GBP/JPY Daily Outlook
Daily Pivots: (S1) 119.22; (P) 119.88; (R1) 120.28;
Intraday bias in GBP/JPY remains on the downside for 119.37. Break there will confirm resumption of recent decline from 127.30 and should target 61.8% projection of 127.30 to 119.37 from 122.76 at 117.85, and then 116.83 key support. On the upside, above 120.31 minor resistance will turn bias neutral and bring consolidations. But recovery should be limited well below 122.76 resistance and bring fall resumption.
In the bigger picture, there is no sign of reversal in GBP/JPY as it's still staying well below the falling 55 weeks EMA (now at 127.04). The down trend from 2007 high of 251.09 is still expected to continue to 61.8% projection of 215.87 to 118.81 from 163.05 at 103.06, which is close to 100 psychological level. On the upside, break of 130.83 resistance is needed to be the first signal of medium term reversal. Otherwise, medium term outlook will remain bearish even in case of further rebound.
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EUR/JPY Daily Outlook
Daily Pivots: (S1) 100.13; (P) 100.52; (R1) 101.00;
Intraday bias in EUR/JPY remains on the downside with 100.72 minor resistance intact and current fall is expected to continue lower. Sustained break of 100 psychological level should pave the way to 61.8% projection of 123.31 to 100.74 from 111.57 at 97.62 next. On the upside, above 100.72 minor resistance will turn bias neutral and bring consolidations. But break of 102.53 resistance is needed to signal near term bottoming. Otherwise, outlook will remain bearish and recent fall should continue after brief consolidation.
In the bigger picture, EUR/JPY moved further away from the falling 55 weeks EMA and affirmed the case that downtrend from 2008 high of 169.96 is still in progress. 100 psychological level should be taken out eventually towards 100% projection of 139.21 to 105.42 from 123.31 at 89.52, which is close to 88.96 all time low. On the upside, break of 111.57 resistance is needed to be the first signal of reversal. Otherwise, we'll continue to stay bearish in the cross.
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