Daily Currency Outlook: GPB/JPY And EUR/JPY: June 25, 2013

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

The GBP/JPY lost some momentum after hitting 151.92 and with 4 hours MACD crossed below signal line, intraday bias turned neutral first. On the upside, above 151.92 will target 154.22 resistance first. 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 below 147.10 to extend the correction instead.

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 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) 127.23; (P) 128.21; (R1) 129.16;

The EUR/JPY lost momentum after hitting 129.90 and with 4 hours MACD crossed below signal line, intraday bias turned neutral first. On the upside, above 129.90 will target 131.29 resistance. A break will confirm that correction from 133.80 has completed at 124.95 already. In such case, 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.

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. 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 expect another medium term rally after completing the correction.
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