GBP/JPY Daily Outlook
Daily Pivots: (S1) 173.32; (P) 174.23; (R1) 174.78;
At this point, GBP/JPY is still trying to draw support from 61.8% retracement of 169.34 to 180.70 at 173.67. Above 175.90 minor resistance will turn bias to the upside for retesting 180.70 high. However, sustained trading below 173.67 will bring deeper decline to 169.34 key support level.
In the bigger picture, there is no sign of reversal yet and up trend from 116.83 low is still in progress. Such rise could target 50% retracement retracement of 251.09 to 116.83 at 183.96 and possibly further to 61.8% retracement at 199.80. Meanwhile, outlook will stay bullish as long as 169.34 support holds, in case of deep pull back.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 136.90; (P) 137.41; (R1) 138.18;
The break of 137.87 minor resistance argues that fall from 141.21 has completed at 136.55 already. Intraday bias is turned back to the upside for 141.21 first. The consolidation pattern from is viewed as a five wave triangle structure and could have finished at 136.55. Break of 141.21 will target 145.68. Below 136.55 will extend the fall from 141.21. But in that case, we'd expect strong support above 135.50 key level to bring reversal.
In the bigger picture, the strong rebound from 55 weeks EMA, with 135.50 support intact, suggests that the up trend from 94.11 long term bottom is still in progress. Break of 145.68 will target 76.4% retracement of 169.96 to 94.11 at 152.59. On the downside, again, sustained break of 135.50 key support level will confirm medium term reversal and would target 124.95 support and below.
