GBP/JPY Daily Outlook
Daily Pivots: (S1) 169.12; (P) 170.13; (R1) 171.60;
The rebound from 163.96 extends higher today and breached 38.2% retracement of 188.79 to 163.96 at 173.44. The rebound is stronger than expected and there is no sign of topping yet. Further rise could be seen to 55 days EMA (now at 176.45). On the downside, below 168.55 minor support will turn bias back to the downside for 163.96 low.
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 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) 129.22; (P) 129.71; (R1) 130.49;
The rebound from 126.16 extends today and intraday bias remains on the upside. The strong break of 55 days EMA affirms the case of bear term reversal. Further rise should be seen to 134.58 first. Break would pave the way to 141.04 resistance again. Below 130.22 minor support will turn bias neutral bring consolidations first.
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 of 94.11 to 149.76 at 115.36.
