GBP/JPY Daily Outlook
Daily Pivots: (S1) 187.38; (P) 188.09; (R1) 188.55;
Intraday bias in GBP/JPY remains on the upside for the moment. Rebound from 180.36 is resuming and rally could be seen back towards 195.86 resistance. In case of retreat, we'll stay cautiously bullish as long as 185.98 support holds.
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) 131.44; (P) 131.85; (R1) 132.28;
Intraday bias in EUR/JPY remains neutral for consolidation above 130.64 temporary low. Further fall is still expected as long as 133.18 resistance holds. Break of 130.64 will extend the decline from 141.04 towards 126.09 low. Nonetheless, break of 133.18 will indicate near term reversal and turn focus back to 136.38 resistance.
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.
