GBP/JPY Daily Outlook
Daily Pivots: (S1) 173.39; (P) 173.93; (R1) 174.89;
Intraday bias in GBP/JPY stays neutral first. With 172.77 minor support intact, further rally is still in favor. The correction pattern from 175.36 has completed at 169.34 already. And above 174.65 will target a test on 175.36 resistance first. On the downside, though, below 172.77 minor support will turn bias back to the downside for 169.34/53 again.
In the bigger picture, the strong support from 169.53 structural level suggested that 175.36 is not the medium term top yet. And, up trend from 116.83 long term bottom is is favor to extend higher. Break of 175.36 will target 50% retracement retracement of 251.09 to 116.83 at 183.96. Medium term momentum as seen in weekly MACD isn't too convincing. Thus, we'd expect some strong resistance from 183.96 to finally 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) 138.58; (P) 138.77; (R1) 139.03;
Intraday bias in EUR/JPY remains neutral for the moment. With 138.10 minor support intact, further rise is still in favor. The consolidation pattern from 145.68 could have completed with three waves down to 135.72 just ahead of 135.50 key support level. Break of 138.27 will confirm this bullish case and target 143.78/145.68 resistance zone. Though, below 138.10 will dampen the bullish case and turn focus back to 135.50/72 support zone instead.
In the bigger picture, there is no clear sign of trend reversal in EUR/JPY in spite of the loss of upside momentum as seen in bearish divergence condition in weekly MACD. The cross held on to 135.50 key support level, as well as the 55 weeks EMA. Hence, the up trend from 94.11 long term bottom is still in favor to continue. Break of 145.68 will target 76.4% retracement of 169.96 to 94.11 at 152.59. Though, break of 135.50 will confirm reversal and target 124.95 support.
