GBP/JPY Daily Outlook
Daily Pivots: (S1) 161.63; (P) 162.79; (R1) 163.55;
Intraday bias in GBP/JPY remains neutral for the moment. Consolidation pattern from 159.79 might extend. But upside should be limited below 175.01 resistance and bring fall resumption. Below 159.66 will target 100% projection of 188.79 to 163.96 from 175.01 at 150.18 next.
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) 124.88; (P) 125.42; (R1) 125.83;
Intraday bias in EUR/JPY remains on the downside for channel support (now at 123.44 first). At this point, there is no clear sign of downside acceleration yet and we'd be cautious on support from the channel and bring rebound. Though, firm break there will bring steeper fall to 100% projection of 149.76 to 126.09 from 141.04 at 117.37. On the upside, break of 128.16 resistance is needed to indicate short term bottoming or outlook will stay bearish.
In the bigger picture, the break of 126.09 support indicates that the decline from 149.76 medium term top is developing into a deeper correction. Further fall would be seen to 61.8% retracement of 94.11 to 149.76 at 115.36. Break of 132.36 resistance is needed to be the first sign of medium term reversal. Otherwise, outlook will stay bearish in case of rebound.
