GPB/JPY And EUR/JPY Currency Outlook: January 6, 2014

GBP/JPY Daily Outlook

Daily Pivots: (S1) 171.25; (P) 171.88; (R1) 172.72;

The GBP/JPY's pull back from 174.84 extends lower today and reaches as low as 170.40 so far. As noted before, a short term top could be in place at 174.84 already, with divergence condition in 4 hours MACD. Intraday bias remains on the downside for 170.05 resistance turned support and break will confirm this case and target 166.57 and below. However, rebound from current level, followed by break of 172.23 minor resistance, will keep the near term rising trend line intact. In such case, intraday bias will be flipped back to the upside for retesting 174.84 high.

In the bigger picture, the up trend from 116.83 is still in progress and there is no sign of reversal yet. Break of 159.98 resistance turned support is needed to indicate medium term topping. Otherwise, outlook will stay bullish. The up trend from 116.83 should target 50% retracement retracement of 251.09 to 116.83 at 183.96 and above.
GBP/JPY Hourly Chart" title="GBP/JPY Hourly Chart" width="452" height="600">
GBP/JPY Daily Chart" title="GBP/JPY Daily Chart" width="452" height="600">

EUR/JPY Daily Outlook

Daily Pivots: (S1) 141.83; (P) 142.57; (R1) 143.18;

The EUR/JPY's fall from 145.68 extends lower today and reaches as low as 141.49 so far. As noted before, a short term top is formed with bearish divergence condition in 4 hours MACD. Intraday bias remains on the downside for this week for 140.99 support. Break there will bring deeper fall towards 55 days EMA (now at 138.92). On the upside, above 143.31 minor resistance will turn bias to the upside for retesting 145.68.

In the bigger picture, medium term up trend from 94.11 is still in progress and there is not clear sign of topping yet. Further rally is expected to 76.4% retracement of 169.96 to 94.11 at 152.59 and above. And, break of 135.50 resistance turned support is needed to be the first sign of medium term topping. Otherwise, outlook will stay bullish.
EUR/JPY Hourly Chart" title="EUR/JPY Hourly Chart" width="452" height="600">
EUR/JPY Daily Chart" title="EUR/JPY Daily Chart" width="452" height="600">