GBP/JPY Daily Outlook
Daily Pivots: (S1) 181.97; (P) 182.78; (R1) 184.05;
The strong recovery in GBP/JPY and break of 183.69 minor resistance dampened the bearish case. Intraday bias is back on the upside for 184.99 resistance first. Break will extend the rebound from 175.49 to 187.79/189.70 resistance zone. We'd expect strong resistance from there to bring reversal. On the downside, below 181.46 will turn bias back to the downside for 175.49 support.
In the bigger picture, the up trend from 116.83 lost much medium term momentum with bearish divergence condition seen in weekly MACD. Medium term top could be around the corner, if not formed. Break of 168.01 support will confirm this bearish case and bring deeper correction. Though, as long as 168.01 holds, the up trend could still extend to 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 130.84; (P) 131.32; (R1) 131.94;
With 133.57 minor resistance intact, further fall is expected to 130.13 support. Break will resume the whole fall from 149.76 and target next fibonacci level at 128.50. On the upside, above 133.57 minor resistance will dampen this bearish view and would extend the consolidation from 130.13 with another rise. But in that case, upside should be limited by 137.63 resistance to bring down trend resumption eventually.
In the bigger picture, a medium term top was formed at 149.76 on bearish divergence condition in weekly MACD. Deeper correction should now be seen to 38.2% retracement of 94.11 to 149.76 at 128.50 first. Based on current momentum, the correction could go deeper to 61.8% retracement at 115.36.
