GBP/JPY Daily Outlook
Daily Pivots: (S1) 134.59; (P) 137.03; (R1) 141.07;
The breach of 139.01 minor resistance suggests that a short term bottom is formed at 128.86 on bullish convergence condition in 4 hours MACD. Intraday bias is mildly on the upside for rebound to 145.38 support turned resistance and possibly above. On the downside, below 143.33 minor support will indicate that the corrective recovery is completed and will turn bias back to the downside for 128.86 low.
In the bigger picture, fall from 195.86 medium term top is still in progress and would target 100% projection of 195.86 to 154.70 from 163.87 at 122.71. There is 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) 113.89; (P) 115.16; (R1) 117.03;
The break of 115.49 support turned resistance suggests that corrective rise from 109.20 is going to extend higher. Intraday bias is mildly on the upside for 55 days EMA (now at 118.71). But overall, such rise is still viewed as a corrective move. Below 113.27 minor support will turn bias back to the downside for retesting 109.20 low.
In the bigger picture, medium term down trend form 149.76 is still in progress. Further downside acceleration would send the cross to 76.4% retracement of 94.11 to 149.76 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.
