Daily Currency Outlook: GPB/JPY, EUR/JPY: July 03, 2013

Daily Pivots: (S1) 151.57; (P) 152.15; (R1) 153.05;

Intraday bias in the GBP/JPY remains on the upside, as the rebound from 147.10 is still in progress for 154.22 and above. Note that such a rebound could be the second leg of consolidation from 156.77. We'd be cautious on reversal between 154.22 and 156.77. On the downside, below 149.24 will turn bias back to the downside for 147.10 and below.

A medium term top is in place at 156.77 on bearish divergence condition in daily MACD. Deeper pull back could be seen to 38.2% retracement of 118.82 to 156.77 at 142.27. Strong support would likely be seen at 140.37 to bring rebound, at least on the first attempt. We still expect whole rise from 116.83 medium term bottom to resume later to 163.05 resistance and above after completing the correction.
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EUR/JPY Daily Outlook

Daily Pivots: (S1) 129.90; (P) 130.51; (R1) 131.18;

Intraday bias in the EUR/JPY remains on the upside, and rebound from 124.95 will extend to 131.29 and above. Such rebound could only be the second leg of the consolidation pattern from 133.80. We'd be cautious on reversal from 131.29/133.80. On the downside, below 128.93 minor support will turn bias back to the downside for 126.57 support.
The current development argues that the medium term uptrend from 94.11 has topped out at 133.80 on bearish divergence condition in daily MACD. Such correction could extend with another fall to target 119.10 cluster support (38.2% retracement of 94.11 to 133.80 at 118.63). Strong support could be seen there, at least on initial attempt. A break will target 61.8% retracement at 109.27. Considering the five wave structure of the rise from 94.11, w expect another medium term rally after completing the correction.
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