GBP/JPY Daily Outlook
Daily Pivots: (S1) 142.89; (P) 144.46; (R1) 146.45;
With 138.49 minor support intact, further rally is expected in GBP/JPY. Current rise should target long term fibonacci level at 150.43. As such rebound is seen as part of a correction pattern, we'd be cautious on topping at 150.43 on first attempt. On the downside, break of 138.49 support, however, will indicate short term topping and bring pull back.
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) 119.75; (P) 121.46; (R1) 124.26;
EUR/JPY's rally resumed by taking out 121.88 and reaches as high as 123.18 so far. Intraday bias is back on the upside. Current rise from 109.20 is seen as a medium term corrective move and would target 126.09 resistance next. On the downside, break of 118.71 support is needed to indicate short term topping. Otherwise, further rally is in favor in case of retreat.
In the bigger picture, price actions from 109.20 medium term bottom are seen as correcting whole down trend from 149.76 to 109.20. There is prospect of another rise towards 126.09 key resistance level before completion. But even in that case, we'd expect strong resistance between 126.09 and 141.04 to limit upside. Meanwhile, break of 109.20 will extend the down trend from 149.76 towards 94.11 low.
