GBP/JPY Daily Outlook
Daily Pivots: (S1) 126.70; (P) 127.10; (R1) 127.48;
GBP/JPY rebounds strongly today but stays below 129.61 support turned resistance. Intraday bias stays neutral first. Break of 129.61 will extend the rebound from 122.36 to 132.21 resistance first, and possibly further to 138.81 next. But before that, outlook stays bearish and below 124.81 would extend the larger down trend to 61.8% projection of 163.87 to 128.66 from 138.81 at 117.05.
In the bigger picture, fall from 195.86 medium term top is still in progress and met 100% projection of 195.86 to 154.70 from 163.87 at 122.71. There is prospect of retesting 116.83 (2011 low). On the upside, break of 138.81 resistance is needed to be the first sign medium term bottoming. Otherwise, outlook will remain bearish in case of rebound.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 114.29; (P) 114.70; (R1) 115.06;
No change in EUR/JPY's outlook as it's still bounded inside recent triangle consolidation and intraday bias remains neutral. Break of 116.27 resistance will extend the rebound from 109.20. But in that case, strong resistance should be seen at longer fibonacci level at 121.36 to limit upside. Meanwhile, break of 112.60 support will bring retest of 109.20 low next.
In the bigger picture, current development argues that a medium term bottom is in place at 109.20 and rebound from there would extend. However, momentum isn't convincing enough for trend reversal yet. Hence, in case of stronger rise, we'd be expecting strong resistance from 38.2% retracement of 141.04 to 109.20 at 121.36 to limit upside, at least on first attempt. Meanwhile, break of 112.07 will extend the down trend from 149.76 to 76.4% retracement of 94.11 to 149.76 at 107.24.
