GBP/JPY Daily Outlook
Daily Pivots: (S1) 184.46; (P) 185.17; (R1) 186.34;
With 186.00 minor resistance intact, further fall is still expected in GBP/JPY. Consolidation pattern from 180.36 has completed at 188.79. Deeper fall is expected for a test on 180.36/64 support zone. Above 186.00 minor resistance will turn bias neutral again. But well 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) 131.32; (P) 132.91; (R1) 135.67;
Intraday bias in EUR/JPY remains on the upside for the moment. Rebound from 129.66 short term bottom would target upper channel line (now at 136.20). Nonetheless, the fall from 141.04 is still in favor to extend lower as long as EUR/JPY stays inside this falling channel.
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.
