GPB/JPY And EUR/JPY Currency Outlook: December 10, 2013

GBP/JPY Daily Outlook

Daily Pivots: (S1) 168.61; (P) 169.16; (R1) 170.22; More.....

The break of 169.13 confirmed resumption of larger rally in GBP/JPY. Intraday bias remains on the upside and current rise would extend to 161.8% projection of 147.61 to 159.98 from 156.63 at 173.72 next. On the downside, break of 165.86 support is needed to confirm short term topping. Otherwise, outlook will stay bullish in the cross in case of retreat.

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 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.

GBP/JPY Hourly Chart" title="GBP/JPY Hourly Chart" width="600" height="600">
GBP/JPY Daily Chart" title="GBP/JPY Daily Chart" width="600" height="600">

EUR/JPY Daily Outlook

Daily Pivots: (S1) 141.28; (P) 141.61; (R1) 142.23;

EUR/JPY rises to as high as 142.16 so far today and hit mentioned target of 61.8% projection of 134.10 to 140.02 from 138.45 at 142.10. Intraday bias remains mildly on the upside and further rally could be seen to 100% projection at 144.37. Though, below 140.99 minor support will indicate short term topping and bring pull back to 138.45/140.02 support zone first.

In the bigger picture, medium term up trend from 94.11 is still in progress and EUR/JPY seems to be regaining upside momentum again. Sustained break of 61.8% retracement of 169.96 to 94.11 at 140.98 will pave the way to 76.4% retracement at 152.59. Meanwhile strong bounce off from 140.98 will bring pull back to 124.95 support and possibly below before staging another up trend.
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EUR/JPY Daily Chart" title="EUR/JPY Daily Chart" width="600" height="600">