GBP/JPY Daily Outlook
Daily Pivots: (S1) 140.97; (P) 142.11; (R1) 144.27;
GBP/JPY's rally resumed by breaking 141.73 resistance and reaches as high as 143.69 so far. Intraday bias is back on the upside for long term fibonacci level at 150.43. As such rebound is seen as part of a correction pattern, hence, we'd be cautious on topping at 150.43 on first attempt. On the downside, break of 138.49 support is needed to indicate short term topping. Otherwise, outlook will remain bullish in case of retreat.
In the bigger picture, the down trend from 195.86 top (2015 high) should have made a medium term bottom at 122.36 after hitting 100% projection of 195.86 to 154.70 from 163.87 at 122.71. Rise from there is now expected to develop into a medium term corrective pattern. Further rise should be seen to 38.2% retracement of 195.86 to 122.36 at 150.4. We'd expect strong resistance from there to limit upside. But sustained break there will extend the rise to 61.8% retracement at 167.78.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 119.97; (P) 120.64; (R1) 121.83;
EUR/JPY's rally extends to as high as 121.54 so far and met long term fibonacci level at 121.36. Intraday bias stays on the upside for the moment. Rise from 109.20 is seen as correcting the larger down trend from 149.76. Sustained break of 121.36 will bring further rally to 126.09 support turned resistance. On the downside, break of 118.54 support is needed to confirm short term topping. Otherwise, outlook will stay bullish in case of retreat.
In the bigger picture, a medium term bottom is in place at 109.20 and rebound from there would extend. However, momentum isn't convincing enough for trend reversal yet. Hence, in case of stronger rise, we'd be expecting strong resistance from 38.2% retracement of 141.04 to 109.20 at 121.36 to limit upside, at least on first attempt. However, sustained trading above 121.36 will pave the way to 126.09 key support turned resistance.
