GBP/JPY Daily Outlook
Daily Pivots: (S1) 185.30; (P) 185.68; (R1) 186.22;
As noted before, price actions from 180.36 are viewed as a consolidation pattern. Choppy recovery from 180.64 is viewed as the third leg. While further rise might be seen, strong resistance is expected at 188.28 to limit upside to finish the consolidation. Break of 180.36 will extend the whole fall from 195.86 and should then target a test on 174.86 key support level.
In the bigger picture, the break 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) 132.54; (P) 133.21; (R1) 133.69;
The break of 133.14 support suggests that recent decline from 141.04 is likely resuming. Intraday bias is cautiously on the downside for 132.22 support first. Break will pave the way for a test on 126.09 low. On the upside, above 134.25 minor resistance will dampen this bearish case and turn bias neutral again.
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.