GBP/JPY Daily Outlook
Daily Pivots: (S1) 186.89; (P) 187.62; (R1) 188.54;
GBP/JPY's rally is still in progress and reaches as high as 188.36 so far. Intraday bias remains on the upside for 189.70 resistance. Break will confirm up trend resumption and should target next key level at 199.80. On the downside, below 186.77 minor support will turn bias neutral first. But in that case, pull back should be supported by 180.93/184.45 support zone and bring rally resumption.
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) 133.67; (P) 134.48; (R1) 135.20;
The consolidation from 135.99 is still in progress and intraday bias remains neutral. 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.
