GBP/JPY Daily Outlook
Daily Pivots: (S1) 180.57; (P) 181.07; (R1) 181.84;
With 178/74 minor support intact, rebound from 174.68 is expected to extend higher. As noted before, the corrective pattern from 189.70 could be finished with three waves down to 174.86. Further rise would be seen to 184.99 resistance. Break will most likely extend the larger up trend through 189.70 high. Meanwhile, below 177.46 minor support will turn focus back to 174.86 again.
In the bigger picture, the up trend from 116.83 lost much medium term momentum with bearish divergence condition seen in weekly MACD. Medium term top could be around the corner, if not formed. Break of 168.01 support will confirm this bearish case and bring deeper correction. Though, as long as 168.01 holds, the up trend could still extend to 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 128.18; (P) 128.57; (R1) 128.97;
Outlook in EUR/JPY remains unchanged for the moment. Recovery from 126.09 is viewed as a correction. As long as 131.28 resistance holds, another fall is expected. Break of 126.09 will extend the larger fall to 61.8% projection of 149.76 to 130.13 from 136.67 at 124.53 next. However, break of 131.28 will indicate near term reversal and turn focus back to 136.67 resistance instead.
In the bigger picture, the correction from 149.76 medium term top is still in progress and took out 38.2% retracement of 94.11 to 149.76 at 128.50 already. Such fall would now extend to 61.8% retracement at 115.36, which we might find strong support. In any case, outlook will stay bearish as long as 136.67 resistance holds and deeper decline is expected.
