GBP/JPY Daily Outlook
Daily Pivots: (S1) 173.00; (P) 174.00; (R1) 175.60;
The recovery from 163.96 could extend to 55 days EMA (now at 176.27). But still, we're treating it as a corrective pattern and expect decline from 195.86 to resume later. On the downside, below 168.55 minor support will turn bias back to the downside for 163.96 low.
In the bigger picture, a medium term top was formed at 195.86 on bearish divergence condition in weekly MACD. Fall from 195.86 is currently viewed as a correction and 38.2% retracement of 116.83 to 195.86 at 165.67 is already met. Based on the current momentum, the correction would likely extend to 61.8% retracement at 147.01 before completion. Nonetheless, firm break of 180.36 support turned resistance will suggest that price actions form 195.86 are merely developing into a sideway pattern.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 131.31; (P) 131.66; (R1) 132.09;
Intraday bias in EUR/JPY remains on the upside for the moment. Rebound from 126.16 should target 134.58 resistance first. Sustained break there would pave the back back to 141.04 resistance again. Below 130.22 minor support will turn bias neutral bring consolidations first.
In the bigger picture, price actions from 149.76 medium term top is viewed as developing into a corrective pattern. At this point, as long as 126.09 support holds, we'd expect a sideway pattern between 126.09 and 149.76 in medium term, to be followed by upside breakout at a later stage. However, decisive break of 126.09 will raise some question over this outlook and would at least bring deeper fall to 61.8% retracement of 94.11 to 149.76 at 115.36.
