GBP/JPY Daily Outlook
Daily Pivots: (S1) 172.64; (P) 173.77; (R1) 174.46;
GBP/JPY's fall is still in progress and accelerates. 100% projection of 195.86 to 180.36 from 188.79 at 173.9 is already met. Intraday bias remains on the downside for next long term fibonacci level at 165.67. On the upside, above 174.11 minor resistance will turn bias neutral and bring consolidations before staging another fall.
In the bigger picture, the break of 174.86 support affirmed that case of medium term topping at 195.86 on bearish divergence condition in weekly MACD. Fall from 196.85 is currently viewed as a correction and would first target 38.2% retracement of 116.83 to 195.86 at 165.67. We'd asses the depth of correction based on reactions to 165.67 and the structure of the decline. Break of 180.36 will bring rebound but we'd expect strong resistance bring 195.86 to limit upside and bring another fall to extend the corrective pattern.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 127.09; (P) 127.63; (R1) 128.25;
Outlook in EUR/JPY is unchanged for the moment. While further fall is expected, we'd stay cautious on strong support from 126.09 and bring rebound. Break of 129.66 support turned resistance will indicate short term bottoming and turn bias back to the upside for 134.58 resistance. However, decisive break of 126.09 will extend the larger decline from 149.76.
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.
