GBP/JPY Daily Outlook
Daily Pivots: (S1) 134.51; (P) 135.06; (R1) 136.02;
With 130.23 minor support intact, further rise is still expected in GBP/JPY. As noted before, bullish convergence condition in daily MACD raises the chance of trend reversal and focus will be on 138.81. On the downside, break of 130.23 support, however, will argue that the down trend is still in progress and will turn bias back to the downside for 122.36 low.
In the bigger picture, fall from 195.86 (2015 high) top has met 100% projection of 195.86 to 154.70 from 163.87 at 122.71 already. There is increasing chance of medium term bottoming at 112.36. Break of 138.81 would turn GBP/JPY into corrective phase and bring rebound to 38.2% retracement of 195.86 to 122.36 at 150.43 to limit upside. Meanwhile, break of 122.36 will extend the down trend to 116.83 (2011 low).
EUR/JPY Daily Outlook
Daily Pivots: (S1) 115.21; (P) 115.84; (R1) 116.39;
At this point, further rise is still expected in EUR/JPY for 118.45 resistance and above. As price actions from 109.20 are seen as a consolidative pattern, we'd expect strong resistance from longer term fibonacci level at 121.36 to limit upside. Meanwhile, below 114.96 minor support will turn bias back to the downside and extend recent consolidation from 109.20.
In the bigger picture, 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 112.06 support will likely extend the down trend from 149.76 to 76.4% retracement of 94.11 to 149.76 at 107.24.
