GBP/JPY Daily Outlook
Daily Pivots: (S1) 181.21; (P) 181.80; (R1) 182.91;
GBP/JPY's rebound from 174.86 is still in progress and intraday bias remains on the upside. 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 180.64 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;
Current development argues that fall from 149.76 has completed at 126.09. Focus is now on 131.28 resistance. Sustained break there will confirm this case and will bring stronger rebound back to 38.2% retracement of 149.76 to 126.09 at 135.13. On the downside, below 128.83 minor support will turn bias back to the downside for retesting 126.09 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.
