GBP/JPY Daily Outlook
Daily Pivots: (S1) 172.90; (P) 173.66; (R1) 174.36;
Intraday bias in GBP/JPY remains on the downside for the moment. As noted before, prior break of 174.09 support raised the chance of near term reversal. Break of 172.36 will confirm this case and target 169.53 key support level next. On the upside, above 174.41 temporary resistance will mix up the outlook and turn bias neutral again.
In the bigger picture, the up trend from 116.83 (2011 low) is still in progress. But again, as medium term momentum is unconvincing as seen in weekly MACD. Thus, we'd expect strong resistance from 50% retracement retracement of 251.09 to 116.83 at 183.96 to limit upside and bring reversal. Meanwhile, sustained break of 169.53 support should confirm medium term topping and turn outlook bearish.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 137.38; (P) 138.02; (R1) 138.56;
Intraday bias in EUR/JPY remains on the downside as the fall from 143.78 has just resumed. Such fall is the third leg of the pattern from 145.68 and should now target 136.22 key support level. On the upside, break of 139.27 resistance is needed to indicate near term bottoming. Otherwise, outlook will stay bearish in case of recovery.
In the bigger picture, loss of upside momentum was seen in bearish divergence condition in weekly MACD. However, EUR/JPY is so far holding above 135.50 key support. Thus, there is no confirmation of trend reversal yet. Break of 145.68 will extend the up trend from 94.11 towards 76.4% retracement of 169.96 to 94.11 at 152.59 before topping. Meanwhile, break of 135.50 will confirm reversal and target 124.95 support.
