Daily Currency Outlook: GPB/JPY Rebounds, EUR/JPY Bottoms At 127.96

Daily Pivots: (S1) 149.14; (P) 149.52; (R1) 150.21;

GBP/JPY's rebound further from 147.61 and focus is back on 151.53 resistance. Break will indicate that fall from 154.04 has completed and consolidation from 147.10 is still in progress. In such case, stronger rebound would be seen to 154.04 and possibly above. On the downside, below 147.61 will target 147.10 support first. Break will target 100% projection of 156.77 to 147.10 from 154.04 at 144.37.

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. 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.


EUR/JPY Daily Outlook

Daily Pivots: (S1) 128.25; (P) 128.58; (R1) 129.20;

Intraday bias in EUR/JPY is turned neutral with a temporary bottom formed at 127.96. Focus is back on 129.70 minor resistance. Decisive break there will argue that the fall from 132.73 is completed. The three wave corrective structure in turn indicate that the rebound from 124.95 isn't finished yet. Intraday bias would be flipped back to the upside for 131.96 resistance and above. Meanwhile,below 127.96 will bring deeper fall towards 124.95.

In the bigger picture, 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. Consolidation from there 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 would be seen there, at least on initial attempt. But, break will target 61.8% retracement at 109.27. Nonetheless, considering the five wave structure of the rise from 94.11, we'd expect another medium term rally after completing the correction.