GBP/JPY Daily Outlook
Daily Pivots: (S1) 187.68; (P) 189.22; (R1) 191.96;
Intraday bias in GBP/JPY remains mildly on the upside for the moment. As noted before, the pull back from 195.86 should have completed at 184.95. Further rise could be seen back to retest 195.86. Though, strong resistance might be seen there to limit upside on first attempt. GBP/JPY could stay in sideway consolidation for a while in near term. Meanwhile, below 184.95 will target 61.8% retracement of 174.86 to 195.86 at 182.88 and below.
In the bigger picture, the up trend from 116.83 is still in progress and would target 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. Medium term momentum is not too convincing with bearish divergence condition in weekly MACD. We'd be cautious on medium term topping around 200 and bring a deep correction. Meanwhile, break of 174.86 will suggest that the trend has reversed earlier than we expect.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 134.73; (P) 136.01; (R1) 138.20;
Intraday bias in EUR/JPY remains mildly on the upside for the moment. As noted before, fall from 141.04 should have completed at 133.39, ahead of 133.09 key near term support. And, price actions from 141.04 is possibly just developing into a sideway consolidation pattern. Further rise would be seen to retest 141.04 first. In any case, as long as 133.09 support holds, rise from 126.09 is in favor to extend beyond 141.04 at a later stage.
In the bigger picture, price actions from 149.76 medium term top is viewed as corrective in nature. Strong rebound after failing to sustain below 38.2% retracement of 94.11 to 149.76 at 128.50 argues that it's developing into a sideway pattern. We'd expect more range trading between 126.09 and 149.76 in medium term. And that should then be followed by an upside breakout at a later stage. Nonetheless, decisive break of 126.09 would extend the correction towards 61.8% retracement at 115.36.
