GBP/JPY Daily Outlook
Daily Pivots: (S1) 171.42; (P) 172.12; (R1) 173.23;
The GBP/JPY's break of 171.88 confirmed that rebound from 163.87 has resumed. Intraday bias is back on the upside and further rally should be seen to 61.8% projection of 163.87 to 171.88 from 168.82 at 173.77 first and then a test on 174.84 high. Break will resume the larger up trend. On the downside, below 171.38 minor support will turn bias neutral. But outlook will stay mildly bullish as long as 168.82 support holds.
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 163.87 support should confirm medium term topping at 174.84 and bring deeper decline to 147.61/156.77 support zone next.
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GBP/JPY Daily Chart" title="GBP/JPY Daily Chart" width="474" height="242">GBP/JPY Daily" title="GBP/JPY Daily" align="bottom" border="0" height="242" width="474">
EUR/JPY Daily Outlook
Daily Pivots: (S1) 141.25; (P) 142.08; (R1) 143.69;
The EUR/JPY's rally continues to as high as 142.99 so far and intraday bias remains on the upside. Current rally from 138.78 should extend to 100% projection of 136.22 to 141.26 from 138.78 at 143.82. Break will target a test on 145.68 key resistance level. On the downside, below 141.11 minor support will turn bias neutral first. But, near term outlook will stay mildly bullish as long as 138.78 support holds.
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.
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EUR/JPY Daily Chart" title="EUR/JPY Daily Chart" width="474" height="242">EUR/JPY Daily" title="EUR/JPY Daily" align="bottom" border="0" height="242" width="474">