GBP/JPY Daily Outlook
Daily Pivots: (S1) 127.90; (P) 129.81; (R1) 132.93;
GBP/JPY's rebound from 122.36 resumed and takes out 132.21 resistance. Intraday bias is back on the upside for 138.81 key resistance level next. Again, bullish convergence condition in daily MACD raises the chance of trend reversal and focus will be on 138.81. On the downside, break of 126.70 will indicate completion of the corrective rise and turn bias back to the downside.
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) 113.99; (P) 114.97; (R1) 116.24;
EUR/JPY's rise and break of 116.27 resistance is seen as indication of recent rang trading. Intraday bias is back on the upside for rebounding to 118.45 resistance and above. At this point, we'd expect strong resistance from longer term fibonacci level at 121.36 to limit upside. On the downside, below 114.96 minor support will turn bias neutral first.
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.
