GBP/JPY Daily Outlook
Daily Pivots: (S1) 167.50; (P) 168.54; (R1) 169.33;
The consolidation in GBP/JPY was rather brief as fall from 173.57 resumed quickly. Intraday bias is back on the downside. As noted before, such decline from 173.57 is viewed as the third leg of the correction pattern from 174.84 and should target 163.87 key support next. On the upside, above 169.60 minor resistance will turn intraday bias neutral again.
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">
GBP/JPY Daily Outlook
Daily Pivots: (S1) 167.50; (P) 168.54; (R1) 169.33;
The consolidation in GBP/JPY was rather brief as fall from 173.57 resumed quickly. Intraday bias is back on the downside. As noted before, such decline from 173.57 is viewed as the third leg of the correction pattern from 174.84 and should target 163.87 key support next. On the upside, above 169.60 minor resistance will turn intraday bias neutral again.
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.
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">