GBP/JPY Daily Outlook
Daily Pivots: (S1) 138.76; (P) 139.75; (R1) 140.30;
Intraday bias in GBP/JPY remains on the downside for 136.44 support and below. Current decline from 144.77 is seen as the third leg of consolidation pattern from 148.42. Hence, we'd expect strong support from 50% retracement of 122.36 to 148.42 at 135.39 to contain downside and bring rebound. On the upside, above 141.96 minor resistance will turn bias back to the upside. However, sustained trading below 135.39 will argue that whole rise from 122.36 is completed and will turn outlook bearish.
In the bigger picture, price actions from 122.36 medium term bottom are still seen as a corrective pattern. Main focus is on 38.2% retracement of 195.86 to 122.36 at 150.42. Rejection from there will turn the cross into medium term sideway pattern with a test on 122.36 low next. Though, sustained break of 150.42 will extend the rebound towards 61.8% retracement at 167.78.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 119.54; (P) 120.51; (R1) 121.08;
EUR/JPY's sharp decline and break of 120.54 indicates that fall from 124.08 has resumed. Intraday bias is back on the downside for 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39). Nonetheless, such decline from 124.08 is still seen as a corrective move. Hence, we'd expect strong support from 118.39/45 to bring rebound. On the upside, above 120.54 minor resistance will turn bias back to the upside for 123.30/124.08 resistance zone.
In the bigger picture, price actions from 109.20 medium term bottom are seen as part of a medium term corrective pattern from 149.76. 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. Nonetheless, decisive break of 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39) will argue that rise from 109.20 is completed and turn outlook bearish for 61.8% retracement at 114.88 and below.
