GBP/JPY Daily Outlook
Daily Pivots: (S1) 168.09; (P) 169.85; (R1) 171.01;
The decline from 173.57 accelerates lower and reaches as low as 168.70 so far. The breach of 168.82 support argues that rebound from 163.87 has possibly completed at 173.57 already. Intraday bias is back on the downside. Fall from 173.57 could be the third leg of the correction pattern from 174.84 and would now target 163.87 and possibly below. On the upside, above 171.63 minor resistance will turn bias back to the upside for 173.57 instead.
In the bigger picture, the up trend from 116.83 (2011 low) might still extend to above 174.84. Nonetheless, upside momentum is rather unconvincing as seen in weekly MACD. Thus, even in that case, we'd expect strong resistance from 50% retracement retracement of 251.09 to 116.83 at 183.96 to limit upside. Meanwhile, sustained break of 163.87 support should confirm medium term topping at 174.84 and bring deeper decline to 147.61/156.77 support zone next.
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EUR/JPY Daily Outlook
Daily Pivots: (S1) 140.14; (P) 141.76; (R1) 142.82;
EUR/JPY's fall from 143.78 accelerates low and the break of 141.26 resistance turned support argues that rebound from 136.22 is likely over. Intraday bias is back on the downside for 138.78 support. Break will confirm this case and indicates that the correction pattern from 145.68 has started the third leg and would target 136.22 low next. On the upside, above 142.23 minor resistance will turn bias back to the upside for 143.78 resistance instead.
In the bigger picture, loss of upside momentum was seen in bearish divergence condition in daily and weekly MACD. However, EUR/JPY is so far holding above 135.50 key support. Thus, there is no confirmation of trend reversal yet. Break of 145.68 will extend the up trend from 94.11 towards 76.4% retracement of 169.96 to 94.11 at 152.59 before topping. Meanwhile, break of 135.50 will confirm reversal and target 124.95 support.
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