Friday’s Major Currency Pair Analysis

Daily Pivots: (S1) 152.46; (P) 153.16; (R1) 154.04;

With 4 hours MACD staying below the signal line, upside momentum in GBP/JPY remains unconvincing. We'd expect the current rise to be limited by 61.8% projection of 125.67 to 147.97 from 140.37 at 154.15 and bring pull back soon. Below 151.13 will turn bias back to the downside for 4 hours 55 EMA. Retreat should be contained well above 145.91 support and bring rise resumption.

Medium term fall from 163.05 has already completed at 116.83. It's a bit early to conclude reversal of the long term down trend from 251.09 (2007 high). A rise from 116.83 should at least be a move at the same degree as a fall from 163.05. Medium term rise is now expected back to 163.05. We'll stay bullish as long as 140.37 support holds.

GBP/JPY H4" title="GBP/JPY H4" width="600" height="600">

GBP/JPY" title="GBP/JPY" width="600" height="600">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 129.82; (P) 130.46; (R1) 131.24;

Upside momentum in EUR/JPY remains unconvincing with 4 hours MACD staying below signal line. We'd expect that EUR/JPY cannot stay above 130 psychological for long and expect a pull back soon. Below 129.35 minor support will bring deeper retreat to 4 hours 55 EMA. Downside should be contained well above 123.86 support and bring another rally. Sustained trading above 130 psychological level, however, will pave the way to next long term retracement level at 132.03 next.

Whole down trend from 169.96 (2008 high) has already completed at 94.1 , on bullish convergence condition in weekly MACD. Rise from there isn't finished yet and is expected to continue to 50% retracement of 169.96 to 94.11 at 132.03 next. Eventually, such rise would likely extend to 139.21 resistance and above. Break of 119.10 support is needed to be the first sign of medium term topping. Otherwise, outlook will stay bullish.
EUR/JPY H4" title="EUR/JPY H4" width="600" height="600">

EUR/JPY" title="EUR/JPY" width="600" height="600">