GBP/JPY Daily Outlook
Daily Pivots: (S1) 181.93; (P) 182.92; (R1) 183.50;
GBP/JPY drew strong support from 55 days EMA and recovered. But it lacked follow through buying through 184.99 resistance. At this point intraday bias is turned neutral first. Above 184.99 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 181.44 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) 128.75; (P) 130.30; (R1) 131.15;
The break of 130.13 confirmed resumption of whole decline from 149.76. Intraday bias remains on the downside and current fall should target next fibonacci level at 128.50. Break will target 61.8% projection of 149.76 to 130.13 from 136.67 at 124.53. On the upside, above 131.86 minor resistance will turn bias neutral and bring consolidations. But upside of recovery should be limited below 136.67 resistance and bring another fall.
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.
