GBP/JPY Daily Outlook
Daily Pivots: (S1) 169.99; (P) 170.64; (R1) 171.75;
The recovery from 167.77 is still in progress and further rise could be seen. But again, price actions from 174.84 are viewed as a consolidation pattern. Rebound from 163.87, as the second leg, is finished at 173.57. Hence, recovery from 167.77 should be limited below 173.57 and bring fall resumption . Below 167.77 will target 163.87 and below. Nonetheless, a break above 173.57 will extend the second leg from 163.87 a bit higher before starting the third leg.
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 Daily Outlook
Daily Pivots: (S1) 140.35; (P) 141.00; (R1) 142.04;
The recovery from 167.77 is still in progress and further rise could be seen. But again, price actions from 174.84 are viewed as a consolidation pattern. Rebound from 163.87, as the second leg, is finished at 173.57. Hence, recovery from 167.77 should be limited below 173.57 and bring fall resumption . Below 167.77 will target 163.87 and below. Nonetheless, a break above 173.57 will extend the second leg from 163.87 a bit higher before starting the third leg.
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.
