EUR/JPY Daily Outlook
Daily Pivots: (S1) 158.73; (P) 160.13; (R1) 161.15;
GBP/JPY's decline finally resumed by taking out 159.79 support and reaches as low as 157.97 so far today. Intraday bias is back on the downside. The fall from 195.86 should now target 100% projection of 188.79 to 163.96 from 175.01 at 150.18 next. On the upside, break of 166.07 resistance is needed to indicate short term bottoming. Otherwise, outlook will stay bearish in case of recovery.
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) 124.08; (P) 124.81; (R1) 125.27;
EUR/JPY's decline continues today and reaches as low as 123.68. Focus remains on lower channel support (now at 123.44). Break there will indicate downside acceleration and should target 100% projection of 149.76 to 126.09 from 141.04 at 117.37. On the upside, above 125.77 minor resistance will turn bias neutral and bring recovery first.
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.
