GBP/JPY Daily Outlook
Daily Pivots: (S1) 153.66; (P) 155.46; (R1) 156.36;
GBP/JPY's decline from 163.87 extends today and breaks 153.64 support. The development suggests that consolidation pattern from 151.64 has completed with three waves up to 163.87, below 164.09 resistance. Intraday bias remains on the downside for 151.64 low. Break will extend the larger down trend and target next long term fibonacci level at 147.01. On the upside, above 155.35 minor resistance will turn bias neutral and bring consolidations first.
In the bigger picture, fall from 195.86 medium term is viewed as a corrective move. There is no confirmation of completion yet and GBP/JPY might still target 61.8% retracement of 116.83 to 195.86 at 147.01. We'll start to look for reversal signal below there. However, break of 164.09 will suggests that decline is finished and open up the case for rebound to 61.8% retracement of 195.86 to 151.64 at 178.96 and above.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 120.72; (P) 121.20; (R1) 121.57;
Intraday bias in EUR/JPY remains on the downside for the moment. Recent down trend has just resumed and further fall should be seen to next projection level at 117.37. On the upside, above 121.89 minor resistance will turn bias neutral and bring consolidations. But break of 124.18 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
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 124.18 resistance, however, will suggest that the correction has completed earlier than we thought and turn outlook bullish.
