GBP/JPY Daily Outlook
Daily Pivots: (S1) 145.58; (P) 146.34; (R1) 146.89;
GBP/JPY's correction from 148.09 is still in progress and deeper fall could be seen. But downside is expected to be contained by 38.2% retracement of 135.58 to 148.09 at 143.31 and bring rise resumption. Break of 148.42 resistance will target 150.42 long term fibonacci level first. Break there will pave the way to 100% projection of 122.36 to 148.42 from 135.58 at 161.64.
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) 124.68; (P) 125.24; (R1) 125.91;
EUR/JPY rises to as high as 125.80 so far but lose some upside momentum ahead of 126.09 resistance. Intraday bias is turned neutral for consolidation. But near term outlook remains bullish as long as 123.30 support holds. Rise from 114.84 is part of the medium term rebound from 109.03. Break of 126.09 key resistance will target 100% projection of 109.03 to 124.08 from 114.84 at 129.89. Nonetheless, break of 123.30 will indicate short term topping and bring lengthier consolidation before another rally.
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.
