GBP/JPY Daily Outlook
Daily Pivots: (S1) 185.41; (P) 186.42; (R1) 186.99;
Intraday bias in GBP/JPY stays neutral for the moment. Price actions from 195.86 are viewed as a consolidation pattern and should be supported by mentioned 182.88 fibonacci level. An upside breakout through 195.86 is expected later. However, sustained trading below 182.88 will dampen our view and turn focus back to 174.86 support instead.
In the bigger picture, the is not enough evidence for medium term reversal yet. The up trend from 116.83 could extend to 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level and top there. Meanwhile, considering bearish divergence condition in weekly MACD. Break of 174.86 support will suggest that the trend has reversed earlier than we expect.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 135.32; (P) 135.97; (R1) 136.64;
Intraday bias in EUR/JPY remains neutral for the moment. The rebound from 133.29 is likely a corrective move and could have finished at 138.99 already. Break of 134.99 support should target 133.29 and then 100% projection of 141.04 to 133.29 from 138.99 at 131.24.
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.
