GBP/JPY Daily Outlook
Daily Pivots: (S1) 170.56; (P) 172.15; (R1) 173.56;
A temporary low is in place at 170.74 and intraday bias is turned neutral first. Some consolidations would be seen but outlook will remain bearish for the moment. Fall from 195.86 is seen as a medium term correction pattern and is expected to target next long term fibonacci level at 165.67 later.
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) 127.37; (P) 127.99; (R1) 129.21;
A temporary low is in place at 126.77 and intraday bias is turned neutral for the moment. Deeper fall is still expected as long as 129.66 support turned resistance holds. Below 126.77 will target 126.09 low first. Decisive break there will extend the larger decline from 149.76. Nonetheless, break of 129.66 might bring stronger rebound back to 134.58.
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.
