GBP/JPY Daily Outlook
Daily Pivots: (S1) 153.58; (P) 154.61; (R1) 156.27;
GBP/JPY rebounded ahead of 151.64 support after forming a temporary low at 152.93. Intraday bias is turned neutral first. Near term outlook stays bearish with 164.09 resistance intact and downside breakout is expected. Break of 151.64 will extend the larger down trend and target next long term fibonacci level at 147.01.
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) 121.17; (P) 121.75; (R1) 122.68;
A temporary low is in place at 120.78 and intraday bias is turned neutral. Break of 124.18 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish. Below 120.78 will extend the larger down trend to next projection level at 117.37.
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.
