GBP/JPY Daily Outlook
Daily Pivots: (S1) 136.87; (P) 137.86; (R1) 139.46;
Intraday bias in GBP/JPY remains on the upside for the moment. Focus remains on 138.81 resistance as the cross is now pressing. Decisive break there will confirm trend reversal on bullish convergence condition in daily MACD. In the case, rise from 122.36 would target long term fibonacci level at 150.43. However, rejection from 138.81, followed by break of 135.39 minor support will dampen this bullish case and turn bias back to the downside.
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) 117.39; (P) 117.69; (R1) 118.09;
Intraday bias in EUR/JPY remains on the upside as rise from 112.60 extends today. Next target will be 118.45 resistance. At this point, price actions from 109.20 are seen as a corrective pattern. We'd expect strong resistance from longer term fibonacci level at 121.36 to limit upside. On the downside, below 116.24 will indicate short term topping and turn bias back to the downside for 112.60 support.
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.
