GBP/JPY Daily Outlook
Daily Pivots: (S1) 184.57; (P) 185.11; (R1) 185.88;
Intraday bias in GBP/JPY is remains neutral for the moment. But outlook is unchanged and stays cautiously bearish. Consolidation pattern from 180.36 has completed at 188.79. Deeper fall is expected and below 184.23 temporary low will target a test on 180.36/64 support zone. We'll maintain this bearish view as long as 188.79 resistance holds.
In the bigger picture, the breach of the medium term trend line support is taken as a sign of trend reversal. This is supported by bearish divergence condition in weekly MACD. Also, GBP/JPY was close to key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. Break of 174.86 will confirm trend reversal and bring deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67. In case of another rise, we'll be cautious on strong resistance from 199.80/200.00 to bring reversal finally.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 129.99; (P) 130.39; (R1) 131.04;
With 131.57 minor resistance intact, deeper decline is still expected in EUR/JPY for channel support (now at 129.38) first. Sustained break there will pave the way for a test on 126.09 low. Nonetheless, considering bullish convergence condition in 4 hours MACD, break of 131.57 resistance will indicate short term bottoming and bring stronger rebound.
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.
