Daily GPB/JPY and EUR/JPY Outlook: February 8, 2012

Daily Pivots: (S1) 120.65; (P) 120.95; (R1) 121.42;

GBP/JPY's strong break of 122.04 resistance confirmed resumption of whole rebound from 117.29. Intraday bias is back on the upside and current rally should target 100% projection of 117.29 to 122.04 from 119.58 at 124.33 next. Also, note again that such rise from 117.29 is viewed as the third leg of the consolidation pattern from 116.83 and might take on 127.30 resistance eventually. On the downside below 121.88 minor support will turn bias neutral and bring retreat. But near term outlook will stay bullish as long as 119.58 support holds.

In the bigger picture, consolidation from 116.83 is still in progress and fall from 140.20, which is part of the medium term down trend from 163.05, is not ready to resume yet. While rise from 117.29 might extend further higher, we'd expect strong resistance from 50% retracement of 140.02 to 116.83 at 128.42 to finish the consolidation and bring down trend resumption. We will not consider medium term trend reversal yet before sustained trading above 128.42 fibonacci level.

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EUR/JPY Daily Outlook

Daily Pivots: (S1) 100.04; (P) 100.32; (R1) 100.79;

EUR/JPY's strong rise and break of 102.20 resistance confirmed that whole rebound from 97.03 has resumed. Intraday bias is back on the upside and current rise should extend to 100% projection of 97.03 to 102.20 from 99.24 at 104.41. On the downside, below 01.60 minor support will turn bias neutral and bring retreat. But near term outlook will remain cautiously bullish as long as 99.24 support holds.

In the bigger picture, fall from 123.31 is part of the down trend from 2008 high of 169.96 and should target 100% projection of 139.21 to 105.42 from 123.31 at 89.52. At this point, we'd anticipate strong support there to bring at least a rebound attempt, as it's close to 88.96 all time low as well as100% projection of 123.31 to 100.74 from 111.57 at 89.00. Though, a break of 111.57 resistance is needed to be the first signal of medium term reversal. Otherwise, we'll continue to stay bearish in the cross even in case of rebound.

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