GBP/JPY Daily Outlook
Daily Pivots: (S1) 189.29; (P) 189.81; (R1) 190.41;
GBP/JPY's rally resumes after brief consolidation and intraday bias is back on the upside. Current up trend should now target 100% projection of 168.01 to 189.70 from 174.86 at 196.55. On the downside, break of 185.97 support is needed to confirm short term topping. Otherwise, outlook will stay bullish even in case of retreat.
In the bigger picture, the up trend from 116.83 should be resuming and would target 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. Medium term momentum is not too convincing with bearish divergence condition in weekly MACD. We'd be cautious on medium term topping around 200 and bring a deep correction. meanwhile, break of 174.86 will suggest that the trend has reversed earlier than we expect.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 134.06; (P) 134.54; (R1) 135.30;
The rebound from 133.09 extends higher today and break of 135.34 minor resistance suggests that pull back from 136.95 is completed. Also, it indicates that rise from 126.09 is still in progress and is possibly resuming. Intraday bias is back on the upside for 136.95 first. Break will target 61.8% retracement of 149.76 to 126.09 at 140.71.
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. Nonetheless, decisive break of 126.09 would extend the correction towards 61.8% retracement at 115.36.
