GBP/JPY Daily Outlook
Daily Pivots: (S1) 140.38; (P) 141.09; (R1) 142.17;
Rebound from 138.53 extended and the break of 141.96 minor resistance suggests that pull back from 144.77 is finished at 138.53 already. Intraday bias is back on the upside for 144.77 resistance first. Current development argues that price actions from 148.42 is possibly developing into a sideway pattern, with rise from 136.44 as the second leg. Above 144.77 will target a test on 148.42 high. On the downside, below 140.89 minor support will turn bias back to the downside for 138.53 instead.
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) 119.85; (P) 120.31; (R1) 121.12;
EUR/JPY's strong rebound and break of 120.54 minor resistance argues that corrective fall from 124.08 is completed already. Intraday bias is turned back to the upside for 123.30/124.08 resistance zone. Break will resume the rise from 109.20 and target 126.09 key resistance next. In case of another fall, we'd still expect strong support from 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39) to bring rebound.
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.
