Daily Currency Outlook: GPB/JPY And EUR/JPY: June 4, 2013

Daily Pivots: (S1) 151.84; (P) 152.53; (R1) 153.15;

Intraday bias in GBP/JPY remains neutral at this point. The consolidation from 156.77 could continue. Below 151.77 will bring deeper pull back, but in that case, downside should be contained by 146.42 cluster support (61.8% retracement of 140.37 to 156.77 at 146.63) and bring another rally. The larger rise is in favor to continue through 156.77.

The medium term rise from 116.83 is still in progress. Whether such rally is impulsive or corrective by nature, it's at least a move at the same degree as a fall from 163.05. We expect the current rise to extend to 163.05 resistance and above. Considering the bearish divergence condition in daily MACD, a break of 146.42 will indicate medium term topping and should bring deeper fall back to 140.37 and below.

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EUR/JPY Daily Outlook

Daily Pivots: (S1) 129.43; (P) 130.20; (R1) 130.90;

The correction from 133.80 extended and breached the 129.95 minor support. Intraday bias is back on the downside for 127.05 support and possibly below. Downside should be contained by 124.84 cluster support (61.8% retracement of 119.10 to 133.80 at 124.75) and bring another rally. Above 132.07 will turn bias back to the upside, and should extend the larger rally towards 61.8% projection of 100.32 to 127.70 from 119.10 at 136.02
The uptrend from 94.11 long term bottom is starting to lose momentum, with bearish divergence condition seen in the daily MACD. While a further rise is still in favor for the moment, we'll probably see strong resistance between projection level at 136.02 and 61.8% retracement of 169.96 to 94.11 at 140.98 to limit upside, and bring a sizeable consolidation/correction. A break of 124.84 will confirm medium term topping and target 119.10 and below. Considering the five wave structure of the rise from 94.11, we'd expect another medium term rally after completing the anticipated correction.
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