GBP/JPY Daily Outlook
Daily Pivots: (S1) 176.94; (P) 178.07; (R1) 178.95;
Intraday bias in GBP/JPY remains neutral for the moment after drawing support from 61.8% retracement of 168.01 to 189.70 at 176.29 As long as 180.93 resistance holds, deeper decline is still expected Below. 175.86 will extend the fall from 189.70 to retest 168.01 key support level. Meanwhile, break of 180.93 will bring stronger rebound first.
In the bigger picture, the up trend from 116.83 is starting to lose medium term momentum again with bearish divergence condition seen in weekly MACD. Medium term top could be around the corner, if not formed. Break of 168.01 support will confirm this bearish case and bring deeper correction. Though, as long as 168.01 holds, the up trend could still extend to 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 133.47; (P) 135.38; (R1) 136.56;
EUR/JPY drops to as low as 133.19 so far today and took out 134.13 keys support level. There is no sign of bottoming yet and intraday bias stays on the downside. Current fall should now target next medium term fibonacci level at 128.50. On the upside, break of 137.63 resistance is needed to signal short term bottoming. Otherwise, outlook will stay bearish in case of recovery.
In the bigger picture, the break of 134.13 support should confirm medium term topping at 149.76, on bearish divergence condition in weekly MACD. Deeper correction should now be seen to 38.2% retracement of 94.11 to 149.76 at 128.50 first. Based on current momentum, the correction could go deeper than that and we'll assess later.
