Daily Currency Outlook: GPB/JPY And EUR/JPY: June 19, 2013

Daily Pivots: (S1) 148.49; (P) 149.02; (R1) 149.62;

With 150.56 minor resistance intact, the correction from 156.77 is expected to continue lower. Break of 146.42 will confirm that a whole rally from 118..82 has topped out at 156.77. In such a case,a deeper fall could be seen to 142.27 fibo level. On the upside, above 150.56 minor resistance will turn bias neutral first. Risk will stay on the downside as long as 154.22 resistance holds.

The current development argues that a medium term top is in place at 156.77, on bearish divergence condition in daily MACD. A deeper pull back could be seen to 38.2% retracement of 118.82 to 156.77 at 142.27. Strong support will probably 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.
GBP/JPY H4" width="600" height="600">
GBP/JPY" width="600" height="600">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 126.56; (P) 127.31; (R1) 128.43;

With 128.11 minor resistance intact, deeper decline is still expected to 124.84 support. A break will confirm that larger up trend has already topped out at 133.80, and should target 119.10 cluster support. On the upside, above 128.11 minor resistance will turn bias neutral first. Risk will stay on the downside as long as 131.29 resistance holds.

The current development argues that the medium term up trend from 94.11 has topped out at 133.80 on bearish divergence condition in daily MACD. This type of correction will target 119.10 cluster support (38.2% retracement of 94.11 to 133.80 at 118.63) first. Strong support could be seen at the initial attempt. A break will target 61.8% retracement at 109.27. Nonetheless, considering the five wave structure of the rise from 94.11, we expect another medium term rally after completing the anticipated correction.
EUR/JPY H4" width="600" height="600">
EUR/JPY" width="600" height="600">