GBP/JPY Daily Outlook
Daily Pivots: (S1) 181.36; (P) 182.17; (R1) 183.40;
GBP/JPY's rally from 174.86 resumed by taking out 184.45 resistance. The firm break of 184.99 resistances also confirmed that consolidation pattern from 189.70 could have completed with three waves down to 174.86 already. Intraday bias is back on the upside for retesting 189.70 high next. On the downside, break of 180.93 support is needed to indicate short term topping. Otherwise, outlook will stay bullish in case of retreat.
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) 134.04; (P) 135.02; (R1) 135.85;
Further rise is expected in EUR/JPY as long as 133.01 minor support holds. Decisive break of 136.67 resistance will extend the rise from 126.09 to 61.8% retracement of 149.76 to 126.09 at 140.71. On the downside, break of 133.10 support, however, will indicate short term topping and bring deeper pull back.
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.
