GBP/JPY Daily Outlook
Daily Pivots: (S1) 135.88; (P) 137.36; (R1) 138.83;
Intraday bias in GBP/JPY remains neutral for consolidation above 133.23 temporary low. Upside of recovery should be limited by 145.38 support turned resistance and bring fall resumption. Below 133.23 will extend the larger down trend from 195.86 to next projection level at 122.71.
In the bigger picture, fall from 195.86 medium term top is still in progress and met 61.8% projection of 195.86 to 154.70 from 163.87 at 138.43 already. There is no indication of bottoming yet. Current acceleration suggests that deeper decline would be seen to 100% projection at 122.71, with prospect of retesting 116.83 (2011 low). On the upside, break of 154.70 support turned resistance is needed to be the first sign medium term bottoming. Otherwise, outlook will remain bearish in case of recovery.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 113.68; (P) 114.23; (R1) 115.14;
Intraday bias in EUR/JPY stays neutral for consolidation above 109.20 temporary low. Upside would be limited by 115.49 support turned resistance and bring fall resumption. Below 109.20 will extend the larger down trend to next long term fibonacci level at 107.24.
In the bigger picture, medium term down trend form 149.76 is still in progress. 61.8% retracement of 94.11 to 149.76 at 115.36 was taken out but there is no sign of bottoming yet. Further downside acceleration would send the cross to 76.4% retracement at 107.24. Sustained break there will bring retest of 94.11 low. In any case, break of 121.93 resistance is needed to be the first signal of reversal. Otherwise, outlook will stay bearish in case of recovery.
