GBP/JPY Daily Outlook
Daily Pivots: (S1) 182.52; (P) 183.73; (R1) 185.67;
Intraday bias in GBP/JPY remains neutral for consolidation above 180.36 temporary low. Further decline is expected as long as 187.36 resistance holds. Below 180.36 will target 174.86 key support level. However, decisive break of 187.36 will turn focus back to 195.26 resistance instead.
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.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 133.32; (P) 133.86; (R1) 134.76;
Intraday bias in EUR/JPY remains neutral and more consolidation would be seen above 132.22 temporary low. Further decline is expected as long as 135.79 resistance holds. Below 132.22 will target 126.09 low. However, decisive break of 135.79 will turn focus back to 138.99 resistance instead.
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.
