GBP/JPY Daily Outlook
Daily Pivots: (S1) 186.20; (P) 186.62; (R1) 187.30;
Price action from 180.36 is viewed as a consolidation pattern. Strong resistance is expected at 188.28 to limit upside to finish the consolidation. Below 183.86 will turn bias to the downside for retesting 180.36 first. 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 breach 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) 131.61; (P) 132.01; (R1) 132.36;
Intraday bias in EUR/JPY remains neutral for the moment. In case of further recovery, upside should bel limited well below 136.38 resistance and bring fall resumption. Sustained break of 131.57 will target a test on 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.
