Daily Currency Outlook: GPB/JPY On The Upside, EUR/JPY Rebounds

Daily Pivots: (S1) 152.87; (P) 153.89; (R1) 155.39;

Intraday bias in GBP/JPY remains on the upside for rally towards 156.77 resistance. However, current price actions are viewed as part of the consolidation pattern from 156.77. We'd expect strong resistance below there to bring reversal to extend the pattern. Below 150.47 will turn bias to the downside for 147.10 and below.

In the bigger picture, 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 as consolidation from there extends. Strong support would likely be seen at 140.37 to bring rebound, at least on first attempt. Overall, we'd 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) 129.21; (P) 129.76; (R1) 130.24;

EUR/JPY rebounds strongly today and the break of 130.55 turns intraday bias back to the upside for 132.42 and above. After all, EUR/JPY is still bounded in consolidation pattern from 133.80. Hence, we'd expect strong resistance below there to bring another fall to extend the pattern. On the downside, below 129.30 will turn bias back to the downside for 127.96 and below.

In the bigger picture, medium term up trend from 94.11 has topped out at 133.80 on bearish divergence condition in daily MACD. Consolidation from there could extend with another fall to 55 weeks EMA (now at 121.12) and below. But we'd expect strong support from 119.10 cluster support (38.2% retracement of 94.11 to 133.80 at 118.63) to contain downside. Considering the five wave structure of the rise from 94.11, we'd expect another medium term rally after completing the correction.