EUR/JPY Daily Outlook
Daily Pivots: (S1) 134.75; (P) 135.05; (R1) 135.36;
With 134.47 minor support intact, further rally is still expected in the EUR/JPY through 135.50 resistance. However, we'd continue to expect strong resistance below 139.21 to bring reversal finally. On the downside, below 133.22 minor support will turn bias back to the downside for 131.21. Break there will confirm medium term topping and would turn outlook bearish.
In the bigger picture, the EUR/JPY is expected to top out in medium term soon, if not topped, on lost of upside momentum as seen in daily and weekly MACD. Strong resistance is expected from 139.21 and 61.8% retracement of 169.96 to 94.11 at 140.98 to complete the rally from 94.11. Break of 131.13 would confirm and would bring correction back towards 119.10 support.
EUR/JPY Hourly Chart" title="EUR/JPY Hourly Chart" width="600" height="600">
EUR/JPY Daily Chart" title="EUR/JPY Daily Chart" width="600" height="600">
GBP/JPY Daily Outlook
Daily Pivots: (S1) 160.62; (P) 161.18; (R1) 161.64;
The break of 160.52 minor support turned intraday bias in the GBP/JPY neutral first. At this point, further rally cannot be ruled out yet. But even in that case, But again, we'd expect strong resistance for 163.05 key resistance level to bring reversal on bearish divergence condition in daily MACD. Meanwhile, break of 156.63 support will be a strong signal of trend reversal.
In the bigger picture, considering bearish divergence condition in the daily and weekly MACD, the up trend from 116.83 might be close to completion. Break of 156.63 support should confirm medium term topping and bring correction back to 147.61 support and below. In case of another rise, we'd now expect strong resistance from 163.05 to limit upside.
GBP/JPY Hourly Chart" title="GBP/JPY Hourly Chart" width="600" height="600">
EUR/JPY Daily Chart" title="EUR/JPY Daily Chart" width="600" height="600">