GBP/JPY Daily Outlook
Daily Pivots: (S1) 143.66; (P) 143.96; (R1) 144.33;
The consolidative trading from 148.42 is still in progress. Intraday bias in GBP/JPY remains neutral first. As long as 142.98 minor support holds, further rally is in favor. Above 148.42 will 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. Meanwhile, considering bearish divergence condition in 4 hours MACD, break of 142.98 should confirm short term topping and turn bias to the downside for 55 days EMA (now at 139.65).
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) 122.45; (P) 122.72; (R1) 123.05;
EUR/JPY's consolidation from 124.08 is still in progress. Intraday bias remains neutral for sideway trading. Further rally is in favor as long as 120.90 support holds. Above 124.08 will target 126.09 key resistance next. Considering bearish divergence condition in 4 hours MACD, we'd be cautious on topping around 126.09. Meanwhile, break of 120.90 will indicate short term topping and turn bias to the downside for 55 days EMA (now at 119.37).
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, at least on first attempt.
