GBP/JPY Daily Outlook
Daily Pivots: (S1) 144.23; (P) 144.67; (R1) 145.37;
GBP/JPY's rise continued and reached 145.11 so far, breaching 144.77 resistance. The cross continued to lose upside momentum as seen in 4 hour MACD but there is no clear sign of topping yet. Hence, further rise is still expected. As noted before, consolidation pattern from 148.42 has completed at 135.58, ahead of 135.39 medium term fibonacci level. Sustained trading above 144.77 should then resume the whole rebound from 122.36 through 148.42 resistance. On the downside, though, break of 143.79 minor support will bring pull back to 4 hour 55 EMA (now at 142.62) and below, before staging another rally.
In the bigger picture, based on current momentum, rise from 122.36 bottom should be developing into a medium term move. Break of 38.2% retracement of 195.86 to 122.36 at 150.42 should pave the way to 61.8% retracement at 167.78. This will now be the favored case as long as 135.58 support holds.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 121.99; (P) 122.29; (R1) 122.77;
Intraday bias in EUR/JPY stays on the upside for the moment. Current rally should target 122.88 resistance next. As noted before, the correction from 124.08 should have completed with three waves down to 114.84 already. Break of 122.88 resistance will extend larger rise from 109.20 through 124.08 high. On the downside, below 120.60 minor support will turn bias neutral and bring consolidation before staging another rise.
In the bigger picture, focus is back on 126.09 support turned resistance. Decisive break there will confirm completion of the down trend from 149.76. And in such case, rise from 109.20 is at the same degree and should target 141.04 resistance and above. Meanwhile, rejection from 126.09 and break of 114.84 will extend the fall from 149.76 through 109.20 low.
