GBP/JPY Daily Outlook
Daily Pivots: (S1) 130.07; (P) 130.93; (R1) 131.59;
With 132.52 minor resistance intact, further fall is still expected in GBP/JPY. Sustained break of 128.66 low will resume the larger down trend from 195.86 to next projection level at 122.71. On the upside, above 132.52 minor resistance will turn bias back to the upside and extend the consolidation pattern from 128.86 instead.
In the bigger picture, fall from 195.86 medium term top is still in progress and would target 100% projection of 195.86 to 154.70 from 163.87 at 122.71. There is prospect of retesting 116.83 (2011 low). On the upside, break of 154.70 support turned resistance is needed to be the first sign medium term bottoming. Otherwise, outlook will remain bearish in case of recovery.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 112.70; (P) 113.31; (R1) 113.80;
Intraday bias in EUR/JPY remains neutral for the moment. With 114.80 resistance intact, outlook stays bearish and further decline is expected. Rebound from 109.20 should have completed at 118.45 already. Below 112.31 will target 109.20/110.81 support zone. Break will extend the larger fall to next long term fibonacci level at 107.24. However, above 114.80 minor resistance will argue that the consolidation pattern from 109.20 is extending with another rise and turns bias back to the upside.
In the bigger picture, medium term down trend from 149.76 is still in progress and would target 76.4% retracement of 94.11 to 149.76 at 107.24. Sustained break there will bring retest of 94.11 low. In any case, break of 121.93 resistance is needed to be the first signal of reversal. Otherwise, outlook will stay bearish in case of recovery.
