GBP/JPY Daily Outlook
Daily Pivots: (S1) 168.83; (P) 170.26; (R1) 171.36;
Intraday bias in GBP/JPY remains on the downside for next long term fibonacci level at 165.67. On the upside, above 173.35 minor resistance will turn bias neutral and bring consolidations first. But recovery should be limited below 180.36 support turned resistance and bring fall resumption.
In the bigger picture, current development confirmed medium term topping at 195.86 on bearish divergence condition in weekly MACD. Fall from 195.86 is currently viewed as a correction and would first target 38.2% retracement of 116.83 to 195.86 at 165.67. We'd assess 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) 127.45; (P) 127.72; (R1) 128.00;
Intraday bias in EUR/JPY remains neutral for consolidation above 126.77 temporary low. So far, the fall from 141.04 is not displaying a clear impulsive structure. Thus, even in case of another fall, we'd be cautious on strong support from 126.09 to bring near term reversal. Break of 129.66 support turned resistance will turn bias to the upside for 134.58 resistance first. However, sustained break of 126.09 will carry larger bearish implications.
In the bigger picture, price actions from 149.76 medium term top is viewed as developing into a corrective pattern. At this point, as long as 126.09 support holds, we'd expect a sideway pattern between 126.09 and 149.76 in medium term, to be followed by upside breakout at a later stage. However, decisive break of 126.09 will raise some question over this outlook and would at least bring deeper fall to 61.8% retracement at 115.36.
