EUR/JPY And GBP/JPY Daily Outlook: November 28, 2012

Daily Pivots: (S1) 105.97; (P) 106.47; (R1) 106.82

Intraday bias in EUR/JPY remains neutral for the moment and more consolidative trading could be seen below 107.13. And, break of 105.71 minor support will bring deeper retreat to 4 hours 55 EMA (now at 105.21). But downside should be contained above 103.04 cluster support and bring another rally. Above 107.13 will target 100% projection of 94.11 to 104.58 from 100.32 at 110.79 next, which is close to 111.43 key resistance.

In the bigger picture, we're favoring the case that whole down trend from 169.96 (2008 high) has completed at 94.11 already, on bullish convergence condition in weekly MACD. The strong break above 55 weeks EMA affirmed this view. Break of 111.43 resistance will confirm this bullish case and bring further medium-term rise to 123.31 (38.2% retracement of 169.96 to 94.11 at 123.08) and above. And, we'd favor this bullish scenario as long as 100.32 support holds.
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GBP/JPY Daily Outlook

Daily Pivots: (S1) 131.17; (P) 131.63; (R1) 132.08

Intraday bias in GBP/JPY remains neutral for the moment and some more consolidations could be seen below 132.44. Break of 130.79 minor support will bring deeper retreat to 4 hours 55 EMA (now at 130.49) and below. But downside should be contained above 128.25 cluster support and bring another rally. Above 132.44 will target 133.48 key resistance and above.

In the bigger picture, at this point, we'd like to maintain that price actions from 116.83 (2011 low) are corrective in nature so far. Rise from 118.82 could be the third leg of the pattern from 116.83 and might target 133.48 and above. After all, the likely scenario is that we'll see more range trading between 116.83 and 140.02 (50% retracement of 163.05 to 116.83 at 139.94) ahead, before an eventual downside breakout. We'll favor this view as long as 140.02 resistance holds.