EUR/JPY Daily Outlook
Daily Pivots: (S1) 140.72; (P) 141.34; (R1) 141.94;
Intraday bias in the EUR/JPY remains neutral for some consolidation above 140.44 temporary low. We're favoring the case that rebound from 136.22 is finished at 143.78 already. And fall from there could be the third leg of the correction pattern from 145.68. Below 140.44 will turn bias back to the downside for 138.78 support. Break will confirm this bearish case and target 136.22 low.
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.
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">
GBP/JPY Daily Outlook
Daily Pivots: (S1) 168.30; (P) 168.99; (R1) 169.92;
The GBP/JPY quickly recovered after dipping to 167.77 and intraday bias is turned neutral again. Outlook is unchanged though. Rebound from 163.87 should have completed at 173.57 already and fall from there is the third leg of the correction pattern from 174.87. Upside of current recovery should be limited below 173.57 and bring another fall. Below 167.77 will target 16.387 key support next.
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">