GBP/JPY Daily Outlook
Daily Pivots: (S1) 148.25; (P) 149.08; (R1) 150.25;
GBP/JPY recovers strongly today. But at this point, we'd still expect resistance from 152.93 to limit upside and bring fall resumption. Break of 145.38 will extend the down trend from 195.86 and target next projection level at 138.43. However, sustained break of 152.93 will confirm short term bottoming and bring stronger rebound back to 55 days EMA (now at 157.05) first.
In the bigger picture, fall from 195.86 medium term top is still in progress and met 61.8% retracement of 116.83 to 195.86 at 147.01 already. Current downside acceleration suggest that it's target 61.8% projection of 195.86 to 154.70 from 163.87 at 138.43. In any case, break of 163.87 resistance is needed to confirm medium term bottoming. Otherwise, outlook will remain bearish with risks on the downside.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 116.81; (P) 117.45; (R1) 118.01;
EUR/JPY recovers strongly today but is limited below 119.48 resistance. Intraday bias stays neutral first. We're stay cautious on bottoming around long term fibonacci level at 115.36. Break of 119.48 resistance will be the first sign of reversal and will turn bias to the upside for 121.47 support turned resistance first.
In the bigger picture, medium term down trend form 149.76 is still in progress. We'll look for bottoming signal around 61.8% retracement of 94.11 to 149.76 at 115.36. But further downside acceleration would send the cross to 76.4% retracement at 107.24. In any case, break of 126.09 support turned resistance is needed to confirm medium term reversal. Otherwise, outlook will stay bearish.
