GBP/JPY Daily Outlook
Daily Pivots: (S1) 128.47; (P) 144.28; (R1) 155.39;
Intraday bias in GBP/JPY remains on the downside for the moment. Current down trend form 195.86 should target next projection level at 122.71. On the upside, above 140.17 minor resistance will turn bias neutral and bring consolidations. But recovery should be limited well below 160.08 resistance and bring fall resumption.
In the bigger picture, fall from 195.86 medium term top is still in progress and met 61.8% projection of 195.86 to 154.70 from 163.87 at 138.43 already. There is no indication of bottoming yet. Current acceleration suggests that deeper decline would be seen to 100% projection at 122.71, with prospect of retesting 116.83 (2011 low). On the upside, break of 154.70 support turned resistance is needed to be the first sign medium term bottoming. Otherwise, outlook will remain bearish in case of recovery.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 108.01; (P) 114.98; (R1) 120.45;
Intraday bias in EUR/JPY stays on the downside for next long term fibonacci level at 107.24. Sustained break there will put focus to 100 round number. On the upside, above 115.49 minor resistance will turn bias neutral and bring consolidations first. But outlook will remain bearish as long as 121.93 resistance holds.
In the bigger picture, medium term down trend form 149.76 is still in progress. 61.8% retracement of 94.11 to 149.76 at 115.36 was taken out but there is no sign of bottoming yet. Further downside acceleration would send the cross to 76.4% retracement at 107.24. Sustained break there will bring retest of 94.11 low. In any case, break of 121.93 resistance is needed to be the first signal of reversal. Otherwise, outlook will stay bearish in case of recovery.
