GBP/JPY Daily Outlook
Daily Pivots: (S1) 130.38; (P) 130.87; (R1) 131.44;
GBP/JPY is still staying in tight range above 129.61 support and intraday bias remains neutral. Another recovery cannot be ruled out. But upside should be limited below 138.81 resistance. Eventual downside breakout is expected and break of 129.61 will resume the larger down trend to next projection level at 122.71.
In the bigger picture, fall from 195.86 medium term top is still in progress and would target 100% projection of 195.86 to 154.70 from 163.87 at 122.71. There is prospect of retesting 116.83 (2011 low). On the upside, break of 138.81 resistance is needed to be the first sign medium term bottoming. Otherwise, outlook will remain bearish in case of rebound.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 114.30; (P) 114.83; (R1) 115.82;
The recovery from 112.07 is still in progress and stronger rise cannot be ruled out. But still, price actions from 109.20 are viewed as a consolidation pattern and downside breakout is favored. Below 112.07 will target a test on 109.20 low. And this will be the preferred bearish view as long as 116.36 resistance holds. However, break of 116.36 resistance will be a sign of trend reversal and turn focus back to 118.45 resistance next.
In the bigger picture, there is no sign of trend reversal yet. The medium term fall from 149.76 is expected to continue and target 76.4% retracement of 94.11 to 149.76 at 107.24. Sustained break there will bring retest of 94.11 low. In any case, break of 118.45 resistance is needed to be the first signal of reversal. Otherwise, outlook will stay bearish in case of rebound.
