GBP/JPY Daily Outlook
Daily Pivots: (S1) 159.15; (P) 160.51; (R1) 161.43;
Intraday bias in GBP/JPY is neutral for the moment and consolidation from 154.70 might continue. On the downside, below 158.54 minor support will turn bias back to the downside for 154.70 low. Break will extend the larger down trend. In case of another rise, we'll look for topping above 61.8% retracement of 175.01 to 154.70 at 167.25.
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) 123.57; (P) 124.28; (R1) 124.73;
EUR/JPY drops sharply today but stays in range above 122.06 short term bottom. Intraday bias remains neutral first. More consolidation could be seen but in case of another rise, we'd expect upside to be limited by 38.2% retracement of 132.36 to 122.06 at 125.99. Break of 122.06 will extend the larger down trend to next projection level at 117.37.
In the bigger picture, medium term correction from 149.76 is still in progress and would extend to 100% projection of 149.76 to 126.09 from 141.04 at 117.37. We'll look for bottoming signal around 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.
