GBP/JPY Daily Outlook
Daily Pivots: (S1) 192.93; (P) 193.34; (R1) 194.02;
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 190.53 minor support will turn bias to the downside or 184.95 support again.
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) 135.12; (P) 135.74; (R1) 136.14;
Intraday bias in EUR/JPY is turned neutral for the moment. On the upside, above 137.78 will extend the rebound from 133.29 to 101.04 resistance. Break will extend the whole rise from 126.09. On the downside, below 133.29 will suggest that rebound from 126.09 has completed and will turn near term outlook bearish.
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.
