GBP/JPY Daily Outlook
Daily Pivots: (S1) 174.68; (P) 176.02; (R1) 177.09;
GBP/JPY dropped to as low as 174.93 and recovered mildly ahead of 174.86 key support level. There is no clear sign of bottoming yet. Intraday bias remains on the downside. Decisive break of 174.86 will indicate larger trend reversal and target 100% projection of 195.86 to 180.36 from 188.79 at 173.9 first. On the upside, above 178.10 minor resistance will turn bias neutral and bring consolidation first. But near term outlook will stay bearish as long as 180.36 resistance turned support holds.
In the bigger picture, the medium term is possibly reversal with bearish divergence condition in weekly MACD, ahead of cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. Decisive break of 174.86 will confirm trend reversal and bring deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67 and below. In case of another rise, we'll be cautious on strong resistance from 199.80/200.00 to bring reversal finally.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 128.45; (P) 129.60; (R1) 130.54;
The strong break of 129.66 support confirmed resumption of whole decline from 141.04. Intraday bias remains on the downside for the moment. Break of lower channel support (now at 128.56) will indicate downside acceleration and target a test on 126.09 key support level. On the upside, above 130.16 minor resistance will turn bias neutral and bring consolidations. But near term outlook will stay bearish as long as 134.58 resistance holds.
In the bigger picture, price actions from 149.76 medium term top is viewed as corrective in nature. Strong rebound after failing to sustain below 38.2% retracement of 94.11 to 149.76 at 128.50 argues that it's developing into a sideway pattern. We'd expect more range trading between 126.09 and 149.76 in medium term. And that should then be followed by an upside breakout at a later stage. Nonetheless, decisive break of 126.09 would extend the correction towards 61.8% retracement at 115.36.
