GBP/JPY Daily Outlook
Daily Pivots: (S1) 180.09; (P) 180.94; (R1) 182.35;
Intraday bias in GBP/JPY remains mildly on the upside for the moment. Fall from 189.70 has possibly completed at 175.49. Rise from there would target 187.79/189.70 resistance zone. We'd expect strong resistance from there to bring reversal. Below 179.29 minor support will turn bias back to the downside for 175.49.
In the bigger picture, the up trend from 116.83 is starting to lose medium term momentum again with bearish divergence condition seen in weekly MACD. Medium term top could be around the corner, if not formed. Break of 168.01 support will confirm this bearish case and bring deeper correction. Though, as long as 168.01 holds, the up trend could still extend to 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 134.05; (P) 134.61; (R1) 135.23;
The corrective recovery from 130.13 could still extend higher in near term. But upside of recovery should be limited by 137.63 resistance and bring fall resumption. Below 132.37 minor support will turn bias to the downside for retesting 130.13 first. Break will extend recent down trend and target next medium term fibonacci level at 128.50.
In the bigger picture, the break of 134.13 support should confirm medium term topping at 149.76, on bearish divergence condition in weekly MACD. Deeper correction should now be seen to 38.2% retracement of 94.11 to 149.76 at 128.50 first. Based on current momentum, the correction could go deeper to 61.8% retracement at 115.36.
