GBP/JPY Daily Outlook
Daily Pivots: (S1) 138.60; (P) 139.37; (R1) 139.84;
GBP/JPY is still staying in tight range above 138.53 support and intraday bias stays neutral. Price actions from 148.42 are forming a consolidation pattern. And there is no clear sign of completion yet. On the downside, break of 138.53 support would trigger bring deeper fall to 136.44 support and possibly below. We'd expect strong support from 50% retracement of 122.36 to 148.42 at 135.39 to contain downside and bring rebound. On the upside, break of 142.79 resistance will turn bias to the upside and send GBP/JPY through 144.77 resistance.
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. Or, sustained break of 50% retracement of 122.36 to 148.42 at 135.39 will turn outlook bearish for a test on 122.36 low. Though, sustained break of 150.42 will extend the rebound towards 61.8% retracement of 195.86 to 122.36 at 167.78.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 120.59; (P) 121.01; (R1) 121.30;
Intraday bias in EUR/JPY is turned neutral with today's recovery. On the upside, above 122.24 minor resistance will suggest that fall from 122.88 is merely a pull back. And intraday bias will be turned back to the upside for retesting 124.08 high. Decisive break of 124.08 will extend whole rally from 109.20. On the downside, break of 120.65 will likely extend the fall from 122.88. But we'd expect strong support from 118.345 (38.2% retracement of 109.20 to 124.08 at 118.39) to contain downside and bring rebound.
In the bigger picture, we're holding on to the view that medium term rise from 109.20 is still in progress. Focus is on 126.09 key resistance level. Sustained break will confirm completion of the whole decline from 149.76. And rise from 109.20 is of the same degree as the fall from 149.76. In such case, further rally would be seen to 104.04 resistance and possibly above before topping. Meanwhile, rejection from 126.09, or firm break of 118.45 cluster support, will likely extend the fall from 149.76 through 109.20 low.
