GBP/JPY Daily Outlook
Daily Pivots: (S1) 183.78; (P) 184.90; (R1) 186.02;
Intraday bias in GBP/JPY remains on the upside for the moment. Consolidation pattern from 189.70 has completed with three waves down to 174.86. Further rise should be seen to retest 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 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) 133.73; (P) 134.54; (R1) 135.00;
Intraday bias in EUR/JPY stays neutral for the moment. Another rise is expected as long as 131.28 support holds. Current rebound from 126.09 is viewed as a correction to fall from 149.76. Above 135.99 would target 61.8% retracement of 149.76 to 126.09 at 140.71. Nonetheless, break of 131.28 will turn focus back to 126.09 low instead.
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.
