GBP/JPY Daily Outlook
Daily Pivots: (S1) 143.02; (P) 143.53; (R1) 144.10;
Intraday bias in GBP/JPY remains neutral for the moment. Rise from 122.36 is seen as a corrective move. Below 142.16 will affirm the case that it's completed at 148.42. In that case, intraday bias will be turned to the downside for 55 day EMA (now at 140.62) and below. Break of 148.42 will extend the rise from 122.36. But we'd expect strong resistance from 150.43 long term fibonacci level to limit upside.
In the bigger picture, the down trend from 195.86 top (2015 high) should have made a medium term bottom at 122.36 after hitting 100% projection of 195.86 to 154.70 from 163.87 at 122.71. Rise from there is now expected to develop into a medium term corrective pattern. Upside should be limited by 38.2% retracement of 195.86 to 122.36 at 150.4 for setting the medium term range.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 122.36; (P) 122.90; (R1) 123.69;
Intraday bias in EUR/JPY remains neutral as consolidation from 124.08 continues. Overall, further rally is in favor as long as 120.90 support holds. Above 124.08 will target 126.09 key resistance next. As rise from 109.20 is still seen as a corrective pattern, we'd be cautious on topping around 126.09. Meanwhile, break of 120.90 will indicate short term topping and turn bias to the downside for 55 days EMA (now at 120.22).
In the bigger picture, price actions from 109.20 medium term bottom are seen as part of a medium term corrective pattern from 149.76. There is prospect of another rise towards 126.09 key resistance level before completion. But even in that case, we'd expect strong resistance between 126.09 and 141.04 to limit upside, at least on first attempt. Sustained trading below 55 day EMA will pave the way to retest 109.20.
