GBP/JPY Daily Outlook
Daily Pivots: (S1) 171.31; (P) 172.09; (R1) 172.65;
Intraday bias in the GBP/JPY remains neutral for the moment as consolidation from 173.57 temporary top is still in progress. Deeper retreat could be seen to 4 hours 55 EMA (now at 171.24). But downside should be contained well above 168.82 support and bring rally resumption. Above 173.57 will target a test on 174.84 key resistance next. However, break of 168.82 will suggest that rebound from 163.87 has completed and will turn near term outlook bearish for 163.87 support instead.
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 of 163.87 support should confirm medium term topping at 174.84 and bring deeper decline to 147.61/156.77 support zone next.
GBP/JPY Hourly Chart" title="GBP/JPY Hourly Chart" width="474" height="242">
GBP/JPY Daily Chart" title="GBP/JPY Daily Chart" width="474" height="242">
EUR/JPY Daily Outlook
Daily Pivots: (S1) 142.88; (P) 143.25; (R1) 143.65;
A temporary top is in place at 143.78 in the EUR/JPY and intraday bias is turned neutral first. Some consolidations would be seen but downside is expected to be contained by 141.26 resistance turned support and bring another rally. Above 143.78 will extend the rise from 136.22 to retest 145.68 high. Decisive break there is needed to confirm up trend resumption or we'd see another decline to extend the consolidation from 145.68. Meanwhile, break of 141.26 support will indicate that rebound from 136.22 has completed and will turn bias back to the downside for 138.78 and below.
In the bigger picture, loss of upside momentum was seen in bearish divergence condition in daily and weekly MACD. However, the 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.
EUR/JPY Hourly Chart" title="EUR/JPY Hourly Chart" width="474" height="242">
EUR/JPY Daily Chart" title="EUR/JPY Daily Chart" width="474" height="242">