GBP/JPY Daily Outlook
Daily Pivots: (S1) 165.03; (P) 166.10; (R1) 167.67;
Intraday bias in GBP/JPY remains on the downside for 163.96 low. Break will confirm resumption of larger fall from 195.86 and target 61.8% projection of 188.79 to 163.96 from 175.01 at 159.66. On the upside, above 168.97 minor resistance will turn intraday bias neutral first.
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) 128.64; (P) 129.77; (R1) 130.78;
EUR/JPY recovered after dipping to 128.26 and intraday bias is turned neutral again. Outlook is rather mixed for the near term. Fall from 141.04 looks corrective and should have completed just ahead of 126.09 support. But subsequent rebound was disappointing. We'll stay neutral for the moment. On the upside, break of 132.36 will affirm the case of near term reversal and turn outlook bullish. However, decisive break of 126.09 will carry larger bearish indications.
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.
