GBP/JPY Daily Outlook
Daily Pivots: (S1) 189.50; (P) 190.02; (R1) 190.92;
No change in GBP/JPY's outlook. Further rise is still expected as long as 187.78 support intact. Current rally, as part of the larger up trend, should target 100% projection of 168.01 to 189.70 from 174.86 at 196.55 next. Below 187.87 will indicate short term topping and bring consolidations first.
In the bigger picture, the up trend from 116.83 should be resuming 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) 136.70; (P) 137.78; (R1) 139.47;
EUR/JPY soars to as high as 138.84 as the rise from 126.09 resumed. Intraday bias is back on the upside. Current rise would now target 61.8% retracement of 149.76 to 126.09 at 140.71. Such rise is seen as the send leg of the consolidation pattern fro 149.76. We'd be cautious on topping above 140.71. On the downside, below 136.95 minor support will turn bias neutral and bring retreat. But outlook will stays bullish as long as 133.09 support holds and further rally is in favor.
In the bigger picture, price actions from 149.76 medium term top is viewed as corrective. 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.
