GBP/JPY Daily Outlook
Daily Pivots: (S1) 127.49; (P) 128.04; (R1) 128.63;
Some consolidations could be seen in GBP/JPY in near term. But outlook stays bearish with 129.61 resistance intact. The larger down trend would extend to 61.8% projection of 163.87 to 128.66 from 138.81 at 117.05. Meanwhile, break of 129.61 support turned neutral will confirm bottoming and bring lengthier consolidation.
In the bigger picture, fall from 195.86 medium term top is still in progress and met 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) 115.07; (P) 115.39; (R1) 115.73;
Intraday bias in EUR/JPY remains neutral for the moment. On the upside, break of 116.36 will likely resume the whole rebound from 109.20 and would target 100% projection of 109.20 to 118.45 from 112.07 at 121.32. We'd be cautious on topping there are it's close to long term fibonacci level at 121.36. On the downside, below 114.65 minor support will turn bias neutral again.
In the bigger picture, current development argues that 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 112.07 will extend the down trend from 149.76 to 76.4% retracement of 94.11 to 149.76 at 107.24.
