GBP/JPY Daily Outlook
Daily Pivots: (S1) 160.07; (P) 160.68; (R1) 161.72;
Intraday bias in GBP/JPY remains neutral for consolidations above 154.70 temporary low. Recovery should be limited by 166.07 resistance and bring fall resumption. Below 154.70 will target 100% projection of 188.79 to 163.96 from 175.01 at 150.18 next.
In the bigger picture, a medium term top was formed at 195.86 on bearish divergence condition in weekly MACD. Fall from 195.86 is currently viewed as a correction and would likely extend to 61.8% retracement of 116.83 to 195.86 at 147.01 before completion. On the upside, break of 175.01 resistance is needed to indicate completion of fall from 195.86. Otherwise, outlook will remain bearish in case of rebound.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 123.68; (P) 124.13; (R1) 125.02;
Intraday bias in EUR/JPY remains neutral for consolidation above 122.06 temporary low. Deeper fall is still expected as long as 125.00 resistance holds. Below 122.06 will target 100% projection of 149.76 to 126.09 from 141.04 at 117.37 next. Nonetheless, break of 125.00 resistance will indicate short term bottoming and bring lengthier consolidation before decline resumption.
In the bigger picture, the break of 126.09 support indicates that the decline from 149.76 medium term top is developing into a deeper correction. Further fall would be seen to 61.8% retracement of 94.11 to 149.76 at 115.36. Break of 132.36 resistance is needed to be the first sign of medium term reversal. Otherwise, outlook will stay bearish in case of rebound.
