GBP/JPY Daily Outlook
Daily Pivots: (S1) 142.66; (P) 143.67; (R1) 144.36;
GBP/JPY's break of 142.98 support indicates short term topping at 148.42, on bearish divergence condition in 4 hours MACD. Intraday bias is back on the downside for 55 day EMA (now at 139.72). Rebound from 122.26 is seen as a corrective move and could have finished ahead of long term fibonacci level at 150.43. Sustained trading below 55 day EMA will bring retest of 122.36 low next. On the upside, above 144.69 minor resistance will turn focus back to 148.42 instead.
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. Upside should be limited by 38.2% retracement of 195.86 to 122.36 at 150.4 for setting the medium term range.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 121.51; (P) 122.37; (R1) 122.93;
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 119.42).
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.
