GBP/JPY Daily Outlook
Daily Pivots: (S1) 191.69; (P) 192.71; (R1) 193.46;
Intraday bias in GBP/JPY remains mildly on the downside for the moment. The rebound from 184.95 might have completed at 195.24 already. Fall from there is developing into the third leg of the consolidation pattern from 195.86. Deeper fall would be seen to 190.99 support first. Break will confirm and target 184.95 and below. In that case, we'd expect strong support from 61.8% retracement of 174.86 to 195.86 at 182.88 to contain downside. Meanwhile, in case of another rise, we'd still expect strong resistance from 195.86 to limit upside and bring reversal.
In the bigger picture, the up trend from 116.83 is still in progress and would target 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. Medium term momentum is not too convincing with bearish divergence condition in weekly MACD. We'd be cautious on medium term topping around 200 and bring a deep correction. Meanwhile, break of 174.86 will suggest that the trend has reversed earlier than we expect.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 135.57; (P) 136.14; (R1) 136.73;
Intraday bias in EUR/JPY remains neutral for the moment. With 133.09 support intact, the rebound from 126.09 is still mildly in favor to extend. Above 137.78 will turn bias back to the upside for retesting 141.04 first. However, on the downside, below 133.09 support will suggest that rebound from 126.09 has completed and will turn near term outlook bearish.
In the bigger picture, price actions from 149.76 medium term top is viewed as corrective in nature. Strong rebound after failing to sustain below 38.2% retracement of 94.11 to 149.76 at 128.50 argues that it's developing into a sideway pattern. We'd expect more range trading between 126.09 and 149.76 in medium term. And that should then be followed by an upside breakout at a later stage. Nonetheless, decisive break of 126.09 would extend the correction towards 61.8% retracement at 115.36.