Daily FX Outlook: GPB/JPY, EUR/JPY - April 4, 2013

Daily Pivots: (S1) 140.31; (P) 140.91; (R1) 141.37;

The GBP/JPY pair rebounded strongly today. The break of 143.39 minor resistance suggests that fall from 145.85 has completed. Intraday bias is back on the upside for 145.85 resistance first. Current development implies that the consolidation pattern from 147.97 has alreadycompleted at 140.37. Break of 145.85 will strong suggest that whole up trend from 118.82 is resuming for another high above 147.97. We'll tay cautiously bullish as long as 141.56 minor support holds.

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 down trend from 251.09 (2007 high). A rise from 116.83 should at least be a move at the same degree as fall from 163.05. Medium term rise is now expected back at 163.05. We'll stay bullish as long as 133.48 resistance turned support holds.

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EUR/JPY Daily Outlook

Daily Pivots: (S1) 119.02; (P) 119.59; (R1) 120.09;

The EUR/JPY is rebounding strongly today. The break of 121.86 minor resistance indicates that fall from 126.03 has completed. Intraday bias is back on the upside and EUR/JPY should now target 126.03 resistance first. Current development argue that consolidation pattern from 127.70 might be finished at 119.10 already. Break of 126.30 will strongly suggest that whole rally from 94.11 is resuming. We'll stay cautiously bullish as long as 120.94 minor support holds.

Whole down trend from 169.96 (2008 high) has already completed at 94.11, on bullish convergence condition in weekly MACD. Rise 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. We'll stay bullish as long as 111.43 resistance turned support holds.

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