GBP/JPY Daily Outlook
Daily Pivots: (S1) 163.47; (P) 165.55; (R1) 166.69;
GBP/JPY's decline continues and firm break of 163.96 resistance confirmed resumption of larger decline from 195.86. Intraday bias remains on the downside for 61.8% projection of 188.79 to 163.96 from 175.01 at 159.66. Break there will target 100% projection at 150.18 next. On the upside, above 164.53 minor resistance will turn bias neutral and bring consolidations before staging another decline.
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 would likely extend to 61.8% retracement of 116.83 to 195.86 at 147.01 before completion. On the upside, break of 175.01 resistance is needed to indicate completion of fall from 195.86. Otherwise, outlook will remain bearish in case of rebound.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 127.13; (P) 128.62; (R1) 129.49;
EUR/JPY's fall resumed after brief recovery. Focus is back on 126.09 support. Decisive break there will extend whole decline from 149.76 and target next long term fibonacci level at 115.36. Meanwhile, break of 128.26 support turned resistance will be the first sign of short term reversal and turn bias to the upside for 132.36 resistance.
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.
