GBP/JPY Daily Outlook
Daily Pivots: (S1) 135.51; (P) 136.20; (R1) 137.42;
GBP/JPY's rally is still in progress and intraday bias stays on the upside for 138.81 resistance. As noted before, bullish convergence condition in daily MACD raises the chance of trend reversal. Decisive break there will confirm and target long term fibonacci level at 150.43. On the downside, below 134.97 minor support will turn bias neutral and bring retreat before staging another rally.
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. Meanwhile, break of 122.36 will extend the down trend to 116.83 (2011 low).
EUR/JPY Daily Outlook
Daily Pivots: (S1) 116.42; (P) 116.82; (R1) 117.39;
Intraday bias in EUR/JPY stays neutral for consolidation below 117.47 temporary top. As long as 115.29 minor support holds, further rise is expected. But still, 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 115.29 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.
