GBP/JPY Daily Outlook
Daily Pivots: (S1) 140.66; (P) 141.41; (R1) 142.48;
Intraday bias in GBP/JPY remains neutral for the moment with a temporary low in place at 136.44. Deeper decline is still expected with 142.16 support turned resistance intact. Whole corrective rise from 122.36 could have completed at 148.42. Below 136.44 will target 61.8% retracement of 122.36 to 148.42 at 132.31 and below. Though, above 142.16 will turn focus back to 148.42 high instead.
In the bigger picture, price actions from 122.36 medium term bottom are seen as developing into a corrective pattern. Upside is so far limited by 38.2% retracement of 195.86 to 122.36 at 150.4 for setting the medium term range. At this point, we don't expect a break of 122.36 in near term and the corrective pattern would extend for a while.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 121.86; (P) 122.30; (R1) 122.89;
Break of 1.2241 minor resistance argues that the corrective fall from 1240.08 has completed at 120.54 already. More importantly, rebound from 109.20 is still in progress. Intraday bias is back on the upside fro 124.08 first. Break will target 126.09 key resistance next. On the downside, break of 120.54 will bring deeper fall to 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39).
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.
