GPB/JPY And EUR/JPY Currency Outlook: December 06, 2013

GBP/JPY Daily Outlook

Daily Pivots: (S1) 165.51; (P) 166.63; (R1) 167.41;

The break of 166.84 minor support argues that a short term top is already formed at 169.13 after hitting 100% projection of 147.61 to 159.98 from 156.63. Near term outlook is turned neutral first for some consolidation below 169.13. But, downside of pull back should be contained above 159.98 resistance turned support and bring another rally.

In the bigger picture, there is no clear sign of topping and indeed, the cross might be building upside momentum again. We'd be cautious on resistance from around 38.2% retracement of 251.09 to 116.83 at 168.11 to bring medium term topping. But, sustained break there will pave the way to 50% retracement at 183.96 and above.

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EUR/JPY Daily Outlook

Daily Pivots: (S1) 138.53; (P) 139.04; (R1) 139.64;

With 137.98 minor support intact, further rally cannot be ruled out in EUR/JPY. We'd stay very cautious on strong resistance from long term fibonacci level at 140.98 to bring reversal. A break of 137.98 support will be the first sign of reversal and turn bias to the downside for 135.50 resistance turned support.

In the bigger picture, at this point, we'd still expect strong resistance between 139.21 and 61.8% retracement of 169.96 to 94.11 at 140.98 to complete the rally from 94.11 and form a medium term top. Break of 135.50 support will bring correction back to 124.95 and below. Though, the uptrend from 94.11 should resume after completing the anticipated correction. However, sustained break of 140.98 will target 76.4% retracement at 152.59.
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EUR/JPY Daily Chart" title="EUR/JPY Daily Chart" width="600" height="600">