GBP/JPY Daily Outlook
Daily Pivots: (S1) 192.85; (P) 193.60; (R1) 194.33;
Intraday bias in GBP/JPY remains neutral for the moment. We're viewing price actions from 195.86 as a sideway consolidation pattern. Thus, while another rise cannot be ruled out, strong resistance should be seen around 195.86 to limit upside and bring reversal. Below 190.53 will turn bias back to the downside for 184.95 and possibly further to 61.8% retracement of 174.86 to 195.86 at 182.88.
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) 134.04; (P) 134.65; (R1) 134.96;
Intraday bias in EUR/JPY remains neutral for the moment. With 133.09 support intact, the rebound from 126.09 is still mildly in favor to extend. Above 137.78 will turn bias back to the upside for retesting 141.04 first. However, on the downside, below 133.09 support 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.
