GBP/JPY Daily Outlook
Daily Pivots: (S1) 142.47; (P) 143.82; (R1) 145.02;
Intraday bias in GBP/JPY remains on the upside for the moment. Current rally from 122.36 should target 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) 121.05; (P) 121.42; (R1) 122.01;
Intraday bias in EUR?JPY remains on the upside for the moment. Current rise from 109.20 is corrective the larger down trend from 149.76. Sustained trading above long term fibonacci level at 121.36 will pave the way to 126.09 key support turned resistance next. On the downside, below 120.15 minor support will turn bias neutral and bring retreat first.
In the bigger picture, a medium term bottom is in place at 109.20 and rebound from there would extend. Current upside acceleration suggests that it's correcting the whole down trend from 149.76 to 109.20. EUR/JPY would be targeting 126.09 key resistance level. At this point, the current rise is seen as part of a long term range pattern. Thus, in that case, we'd expect strong resistance between 126.09 and 141.04 to limit upside.
