GBP/JPY Daily Outlook
Daily Pivots: (S1) 156.09; (P) 158.00; (R1) 159.04;
GBP/JPY's decline continues today and reaches as low as 156.29 so far. Intraday bias remains 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, above 159.79 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) 122.84; (P) 123.72; (R1) 124.38;
Intraday bias in EUR/JPY remains on the downside for the moment and the break of lower channel support indicates downside acceleration. Further fall would be seen to 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.
