GBP/JPY Daily Outlook
Daily Pivots: (S1) 158.84; (P) 161.36; (R1) 162.88;
The lack of follow through buying and failure below 164.09 resistance mixes up GBP/JPY's outlook. Intraday bias is turned neutral first. Bullish convergence condition in daily MACD argues that 151.64 is a medium term bottom. Break of 164.09 will target 38.2% retracement of 195.86 to 151.64 at 168.53 next. However, break of 158.03 support will at least trigger a retest of 151.64/153.64 support zone.
In the bigger picture, current development argues that corrective fall from 195.86 has completed at 151.64 on bullish convergence condition in daily MACD. Rebound from there is currently seen as the second leg of a medium term sideway pattern. Break of 164.09 will affirm this case and target could bring further rise to 61.8% retracement of 195.86 to 151.64 at 178.96. But we'll be cautious on strong resistance above 178.96 to bring another falling leg of the consolidation pattern.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 122.75; (P) 123.46; (R1) 123.97;
Intraday bias in EUR/JPY remains neutral as the corrective price action from 121.47 might continue. With 126.46 resistance intact, the larger down trend is still expected to extend lower. Break of 121.47 will target next projection level at 117.37. However, decisive break of 126.46 will carry larger bullish implication and target 128.21 resistance first.
In the bigger picture, medium term correction from 149.76 is still in progress and would extend to 100% projection of 149.76 to 126.09 from 141.04 at 117.37. We'll look for bottoming signal around 61.8% retracement of 94.11 to 149.76 at 115.36. Break of 126.46 resistance, however, will suggest that the correction has completed earlier than we thought and turn outlook bullish.
