GBP/JPY Daily Outlook
Daily Pivots: (S1) 161.14; (P) 161.85; (R1) 162.38;
Intraday bias in GBP/JPY stays mildly on the upside for 164.09 resistance. The rebound from 154.70 is possibly still in progress. But we'd expect strong resistance above 61.8% retracement of 175.01 to 154.70 at 167.25 to limit upside and bring down trend resumption. Below 158.42 will bring retest of 154.70 low.
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) 126.89; (P) 127.36; (R1) 127.94;
Break of 127.28 confirms resumption of rebound from 122.06. Intraday bias is mildly on the upside. But still, we'd expect strong resistance above 61.8% retracement of 132.36 to 122.06 at 128.42 to complete it and bring down trend resumption. Meanwhile, below 124.66 will turn bias to the downside for 122.06 low.
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.
