GBP/JPY Daily Outlook
Daily Pivots: (S1) 139.62; (P) 140.05; (R1) 140.52;
GBP/JPY is staying in range of 138.53/142.79 and outlook is unchanged. Initial bias stays neutral for the moment. Price actions from 148.42 are seen as a corrective pattern. Below 138.53 will bring deeper fall, possibly through 136.44 support. But strong support could be seen at 50% retracement of 122.36 to 148.42 at 135.39 to bring rebound. Above 142.79 will turn bias back to the upside for 144.77 and above.
In the bigger picture, price actions from 122.36 medium term bottom are still seen as a corrective pattern. Main focus is on 38.2% retracement of 195.86 to 122.36 at 150.42. Rejection from there will turn the cross into medium term sideway pattern with a test on 122.36 low next. Though, sustained break of 150.42 will extend the rebound towards 61.8% retracement at 167.78.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 120.35; (P) 120.75; (R1) 121.50;
EUR/JPY dips notably today, ahead of 121.32 resistance. But with 120.01 minor support intact, intraday bias stays on the upside first. Current development suggests that corrective fall from 124.08 has completed at 118.23 already, after defending 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39). Decisive break of 121.32 should confirm this year and target 124.08 high next. On the downside, though, below 120.01 minor support will dampen this bullish case and turn focus back to 118.23 low.
In the bigger picture, price actions from 109.20 medium term bottom are seen as part of a medium term corrective pattern from 149.76. Strong rebound from 118.45 resistance turned support suggests that it's still in progress. Break of 124.08 will target 126.09 key resistance level. We'd be cautious on strong resistance there to limit upside. However, sustained break there will be a strong sign of medium term momentum and could target 141.04 resistance next.
