GBP/JPY Daily Outlook
Daily Pivots: (S1) 173.22; (P) 173.73; (R1) 174.69;
The break of 173.95 resistance confirmed that correction from 175.36 has completed at 169.34 already. And, 169.53 key support level was successfully defended. Intraday bias remain son the upside for a test on 175.36 high. On the downside, below 172.77 minor support will turn bias neutral first.
In the bigger picture, the up trend from 116.83 (2011 low) continued to lose upside momentum. This could be seen in bearish divergence condition in daily MACD. And, weekly MACD continued to trend down. Sustained break of 169.53 support should confirm medium term topping at 1175.36 and turn outlook bearish for 38.2% retracement of 116.83 to 175.36 at 153.00. Before that, another rally cannot be ruled out. But in that case, we'd expect strong resistance below 50% retracement retracement of 251.09 to 116.83 at 183.96 to bring reversal.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 137.91; (P) 138.21; (R1) 138.69;
Intraday bias in EUR/JPY remains on the upside for the moment. Prior break of 138.27 argues that the cross has bottomed at 135.72, just ahead of 135.50 key support level. Further rally is in favor for 138.27 resistance first. Break will confirm this case and turn outlook bullish. Nonetheless, below 137.65 minor support will turn focus back to 135.50 instead.
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.
