Friday's Daily Currency Outlook

Daily Pivots: (S1) 142.46; (P) 144.63; (R1) 148.90;

The GBP/JPY rose sharply to as high as 147.88 so far. The break of 145.85 resistance indicates that consolidation from 147.97 has completed at 140.37 already. Intraday bias remains on the upside for 147.97 high first. Break will confirm resumption of whole rally from 118.82, and should target 150 the psychological level next. On the downside, below 145.85 minor support will turn bias neutral and bring consolidations. Downside of retreat should be contained well above 140.37 support and bring another rally.

In the bigger picture, 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 137.87 support holds.

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EUR/JPY Daily Outlook

Daily Pivots: (S1) 120.94; (P) 122.79; (R1) 126.43;

Intraday bias in EUR/JPY remains on the upside for 126.03. Break will indicate that whole consolidation pattern fro 127.70 has completed at 119.10. More importantly, larger rally fro 94.11 should then be resuming for another high above 127.70. We'll stay cautiously bullish as long as 122.70 minor support holds.

In the bigger picture, whole down trend from 169.96 (2008 high) has already completed at 94.11, 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 a rise would likely extend to 139.21 resistance and above. We'll stay bullish as long as 111.43 resistance turned support holds.
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