GPB/JPY And EUR/JPY Currency Outlook: February 19, 2014

Published 02/19/2014, 02:44 AM
Updated 03/09/2019, 08:30 AM
EUR/JPY
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GBP/JPY
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GBP/JPY Daily Outlook

Daily Pivots: (S1) 170.00; (P) 170.94; (R1) 171.66

The GBP/JPY lost some upside momentum as seen in 4 hours MACD. But with 169.11 minor support intact, bias remains mildly on the upside. As noted before, pull back from 174.84 might be finished at 163.87 already. Current rise from 163.87 should target 73.65/174.84 resistance zone. On the downside, break of 169.11 is needed to indicate completion of the rebound. Otherwise, outlook will stay mildly bullish in case of retreat.

In the bigger picture, the up trend from 116.83 (2011 low) might still extend to above 174.84. Nonetheless, upside momentum is rather unconvincing as seen in weekly MACD. Thus, even in that case, we'd expect strong resistance from 50% retracement retracement of 251.09 to 116.83 at 183.96 to limit upside. Meanwhile, sustained break 163.87 support should confirm medium term topping at 174.84 and bring deeper decline to 147.61/156.77 support zone next.

<span class=GBP/JPY Hourly Chart" title="GBP/JPY Hourly Chart" width="474" height="242">

<span class=GBP/JPY Daily Chart" title="GBP/JPY Daily Chart" width="474" height="242">

EUR/JPY Daily Outlook

Daily Pivots: (S1) 139.86; (P) 140.44; (R1) 141.40

Current development suggests that the pull back from 145.68 has completed with three waves down to 136.22 already, ahead of 135.50 key support level. Intraday bias remains on the upside for 142.41 resistance first. Break will target a test on 145.68 high next. On the downside, break of 138.67 support is needed to indicate completion of rebound from 136.22. Otherwise, outlook will stay mildly bullish in case of retreat.

In the bigger picture, loss of upside momentum was seen in bearish divergence condition in daily and weekly MACD. However, EUR/JPY is so far holding above 135.50 key support. Thus, there is no confirmation of trend reversal yet. Break of 145.68 will extend the up trend from 94.11 towards 76.4% retracement of 169.96 to 94.11 at 152.59 before topping. Meanwhile, break of 135.50 will confirm reversal and target 124.95 support.

<span class=EUR/JPY Hourly Chart" title="EUR/JPY Hourly Chart" width="474" height="242">

<span class=EUR/JPY Daily Chart" title="EUR/JPY Daily Chart" width="474" height="242">

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