GBP/JPY Daily Outlook
Daily Pivots: (S1) 182.60; (P) 183.62; (R1) 184.34;
Intraday bias in GBP/JPY remains on the downside for 103.36 support. Break will extend the whole fall from 195.86 to 174.86 support next. In case o recovery, risk will now stay on the downside as long as 188.28 holds.
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) 133.54; (P) 134.11; (R1) 135.07;
EUR/JPY recovers today but with 134.98 minor resistance intact, deeper fall is still expected to 132.22 support. Break there will resumed the choppy fall from 141.04 and would target 126.09 low. Meanwhile, above 134.98 will turn focus back to 137.43 resistance 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.
