Daily Currency Outlook: GPB/JPY Recovers Mildly, EUR/JPY Unchanged

Daily Pivots: (S1) 150.32; (P) 151.17; (R1) 152.37; More

GBP/JPY drew some support from 4 hours 55 EMA and recovered mildly. Outlook is unchanged though. Consolidation from 153.86 might extend with another decline. Below 149.97 will turn bias to the downside. But in that case, downside should be contained above 145.91 and bring rebound. Eventually, we'd expect up trend from 118.82 to resume later by breaking 153.86.

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

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EUR/JPY Daily Outlook

Daily Pivots: (S1) 128.16; (P) 128.99; (R1) 130.12;

EUR/JPY drew some support from 4 hours 55 EMA and recovered but outlook is unchanged. Consolidation pattern from 131.12 might extend with another fall and below 127.86 will bring deeper decline. But still, downside should be contained above 123.86 support and bring rebound. Eventually, an upside breakout is expected and above 131.12 will resume whole rally from 94.11.

In the bigger picture, whole down trend from 169.96 (2008 high) has completed at 94.11 already, on bullish convergence condition in weekly MACD. 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. Eventually, such 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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