GBP/JPY Daily Outlook
Daily Pivots: (S1) 184.70; (P) 185.70; (R1) 187.12;
Outlook in GBP/JPY is unchanged. Price action from 180.36 is viewed as a consolidation pattern and further rise could be seen. But strong resistance is expected at 188.28 to limit upside to finish the consolidation. Break of 180.36 will extend the whole fall from 195.86 and should then target a test on 174.86 key support level.
In the bigger picture, the break of the medium term trend line support is taken as a sign of trend reversal. This is supported by bearish divergence condition in weekly MACD. Also, GBP/JPY was close to key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. Break of 174.86 will confirm trend reversal and bring deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67. In case of another rise, we'll be cautious on strong resistance from 199.80/200.00 to bring reversal finally.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 132.16; (P) 132.77; (R1) 133.35;
Intraday bias in EUR/JPY remains neutral for the moment. Recovery from 131.57 might extend but upside should be limited well below 136.38 resistance and bring fall resumption. The decline from 141.04 has just resumed and below 131.57 will target 126.09 low.
In the bigger picture, price actions from 149.76 medium term top is viewed as corrective in nature. 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.
