Daily Currency Outlook: GPB/JPY And EUR/JPY: June 24, 2013

Daily Pivots: (S1) 149.76; (P) 150.84; (R1) 151.93;

A further rally is mildly in favor in the GBP/JPY to 154.22 resistance. A break will confirm that correction from 156.77 has already finished at 147.10. In such a case, a stronger rise should be seen to retest 156.77. On the downside, below 148.85 will bring another fall to below 147.10 to extend the correction instead.

In the bigger picture, 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 would likely be seen at 140.37 to bring rebound, at least on 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) 127.54; (P) 128.62; (R1) 129.45;

A further rise is mildly in favor in the EUR/JPY for 131.29 resistance. A break will confirm that correction from 133.80 has already completed at 124.95. In such a case, a stronger rally should be seen to retest 133.80. On the downside, below 127.01 will extend the correction to another low below 124.95 instead.

In the bigger picture, the current development argues that the medium term up trend from 94.11 has topped out at 133.80 on bearish divergence condition in the daily MACD. Such a 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 the initial attempt. A break will target 61.8% retracement at 109.27. Considering the five wave structure of the rise from 94.11, we should expect another medium term rally after completing the correction.
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