GBP/JPY Daily Outlook
Daily Pivots: (S1) 180.98; (P) 182.72; (R1) 183.68;
Intraday bias in GBP/JPY remains neutral for the moment. As long as 180.64 minor support holds, further rise is expected. As noted before, the consolidation pattern from 189.70 could have completed with three waves down to 174.86 already. Decisive break of 184.99 resistance will confirm this case and would extend the larger up trend through 189.70 high. Though, below 180.64 minor support will likely bring another fall before the consolidation pattern completes.
In the bigger picture, the corrective structure of the pattern from 189.70 so far argues that long term up trend from 116.83 hasn't completed yet. This is supported by the strong support seen from 55 weeks EMA. Break of 189.70 will confirm resumption and would target 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. Nonetheless, sustained break of 174.86 will turn focus back to 168.01 key structure support instead.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 133.83; (P) 134.56; (R1) 135.22;
Intraday bias in EUR/JPY remains on the upside for the moment. Further rise would be seen to 136.67 resistance. Decisive break there will pave the way for stronger rise to 61.8% retracement of 149.76 to 126.09 at 140.71. On the downside, below 132.87 minor support will turn bias neutral first.
In the bigger picture, price actions from 149.76 medium term top is viewed as corrective. Strong rebound after failing to sustain below 38.2% retracement of 94.11 to 149.76 at 128.50 argues that it's developing into a sideway pattern. We'd expect more range trading between 126.09 and 149.76 in medium term. And that should then be followed by an upside breakout at a later stage.
