GBP/JPY Daily Outlook
Daily Pivots: (S1) 165.28; (P) 166.49; (R1) 168.54;
A short term bottom is likely in place at 163.96 in GBP/JPY, just ahead of 161.8% projection of 195.86 to 180.36 from 188.79 at 163.71, on bullish convergence condition in 4 hours MACD. Intraday bias is turned neutral first. Above 169.09 minor resistance will bring stronger rebound. Meanwhile, break of 163.96 will target 200% projection at 157.79.
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. 38.2% retracement of 116.83 to 195.86 at 165.67 is already met. Based on the current momentum, the correction would likely extend to 61.8% retracement at 147.01 before completion.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 126.70; (P) 127.44; (R1) 128.73;
At this point, we'll stay cautious on strong support from 126.09 and bring rebound. Break of 129.07 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.
