GBP/JPY Daily Outlook
Daily Pivots: (S1) 171.48; (P) 172.04; (R1) 172.39;
GBP/JPY's fall accelerates to as low as 170.69 so far today and intraday bias remains on the downside. The near term trend has reversed and indeed, 175.36 could be a medium term bottom too. Further fall should be seen to 169.53 key support level for confirmation. On the upside, above 172.60 resistance is needed to sign short term bottoming. Or outlook will stay bearish in case of recovery.
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. There is no clear sign of reversal yet but a medium term top should be near. So, in case of another rise, we'd expect strong resistance below 50% retracement retracement of 251.09 to 116.83 at 183.96 to 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) 136.08; (P) 136.59; (R1) 136.93;
EUR/JPY's fall extends to as low as 135.72 so far today. Intraday bias remains on the downside for 135.50 key support level. Break will carry larger bearish implications and target 131.21 support next. On the upside, break of 137.11 resistance is needed to signal short term bottoming. Otherwise, outlook will stay bearish in case of recovery.
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.
