GBP/JPY Daily Outlook
Daily Pivots: (S1) 139.19; (P) 139.60; (R1) 140.20;
GBP/JPY breached 138.53 support briefly but quickly recovered. As it's staying in range of 138.53/142.79, intraday bias remains neutral first. Price actions from 148.42 are seen as a corrective pattern. Break of 138.53 support will bring deeper decline to 136.44 support and possibly below. However, we'd expect strong support at 50% retracement of 122.36 to 148.42 at 135.39 to bring rebound. On the upside, 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) 120.01; (P) 120.56; (R1) 121.11;
EUR/JPY's rise from 118.23 accelerates to as high as 122.34 so far today and intraday bias remains on the upside. As noted before, corrective fall from 124.08 has completed at 118.23 after defending 118.45 cluster support (38.2% retracement of 109.20 to 124.08 at 118.39). Rise from there should target a test on 123.30/124.08 resistance zone. Break will extend larger rally from 109.20 to next key resistance at 126.09. On the downside, below 121.18 minor support will turn intraday bias neutral first. But pull back should be contained above 120.01 support and bring another rally.
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.
