GBP/JPY Daily Outlook
Daily Pivots: (S1) 145.24; (P) 145.97; (R1) 146.50;
Intraday bias in GBP/JPY remains on the upside. Current rally should target long term fibonacci level at 150.43. As rebound from 122.36 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 142.98 support would confirm short term topping and bring deep pull back to 55 days EMA (now at 136.99).
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) 122.03; (P) 122.41; (R1) 122.75;
EUR/JPY's consolidation from 123.34 temporary top is still in progress and intraday bias remains neutral. As long as 118.71 support holds, further rally is expected. Current rise from 109.20 is seen as a medium term corrective move and above 123.34 would target 126.09 resistance next. We'd be cautious on topping above there. Meanwhile, break of 118.71 support will argue that such rebound is completed and turn outlook bearish.
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.
