Daily Currency Outlook: GPB/JPY And EUR/JPY: May 7, 2013

Daily Pivots: (S1) 154.05; (P) 154.41; (R1) 154.69;

Intraday bias in the GBP/JPY remains on the upside. The uptrend from 116.83 has just resumed, and should be targeting a 100% projection of 125.67 to 147.97, from 140.37 at 162.67. On the downside, a break of the 150.74 support is needed to indicate short term topping. Otherwise, outlook will stay bullish even in the event of a retreat.

In the bigger picture, medium term fall from 163.05 has already completed at 116.83. It's a bit early to conclude reversal of the long term downtrend from 251.09 (2007 high). A rise from 116.83 should at least be a move at the same degree as a fall from 163.05. Medium term rise is now expected back at 163.05. We'll stay bullish as long as 140.37 support holds.
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EUR/JPY Daily Outlook

Daily Pivots: (S1) 129.50; (P) 129.95; (R1) 130.30;

The EUR/JPY lost momentum at 130.40, and retreated. The development suggests that consolidation from 131.12 is possibly extending further. Intraday bias is turned neutral again. Below 127.05 will bring deeper decline, but in that case downside should be contained by 123.86 support and bring rebound. An upside breakout is expected, and a break of 131.12 will confirm resumption of larger up trend and should target 132.03 long term fibo level first.

The whole down trend from 169.96 (2008 high) has already completed at 94.11, on bullish convergence condition in weekly MACD. A rise from there isn't finished yet, and is expected to continue to 50% retracement of 169.96 to 94.11, at 132.03 next. Such a rise would likely extend to 139.21 resistance and above. Break of 119.10 support is needed to be the first sign of medium term topping. Otherwise, outlook will stay bullish.
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