GBP/JPY Daily Outlook
Daily Pivots: (S1) 191.37; (P) 191.79; (R1) 192.35;
Intraday bias in GBP/JPY remains on the upside for the moment. Current up trend is expected to extend to 100% projection of 168.01 to 189.70 from 174.86 at 196.55 next. Near term outlook will stays bullish as long as 188.96 support holds in case of retreat. But break of 188.96 support will indicate near term topping and bring deeper pull back.
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) 138.17; (P) 138.74; (R1) 139.51;
EUR/JPY is mildly lower today as the consolidation from 141.04 temporary top continues. Intraday bias stays neutral for the moment and deeper retreat could be seen. But still, as long as 136.95 support holds, another rally is expected. Above 141.04 will target 100% projection of 126.09 to 136.95 from 133.09 at 143.95. At this point, rebound from 126.09 is still viewed as a leg of the consolidation pattern from 149.76. Thus, we'd expect strong resistance above 143.95 to limit upside and bring reversal. On the downside, break of 136.95 support will argue that such rebound is finished and turn bias back to the downside for 133.09 support first.
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.
