GBP/JPY Daily Outlook
Daily Pivots: (S1) 144.60; (P) 144.97; (R1) 145.45;
GBP/JPY continues to lose upside momentum as seen in 4 hour MACD. But with 143.79 minor support intact, further rally is still expected. Sustained trading above 144.77 resistance will resume the whole rebound from 122.36 through 148.42 high to 150.42 fibonacci level. On the downside, though, break of 143.79 minor support will bring pull back to 4 hour 55 EMA (now at 143.18) 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) 122.41; (P) 122.64; (R1) 122.96;
Upside momentum in EUR/JPY is a but unconvincing as seen in 4 hour MACD. But further rally is still expected with 120.60 support holds. As noted before, the correction from 124.08 should have completed with three waves down to 114.84 already. Firm break of 122.88 resistance will extend larger rise from 109.20 through 124.08 high. On the downside, break of 120.60 will indicate short term topping and bring deeper pull back, possibly to 55 day EMA (now at 119.71).
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.
