GPB/JPY And EUR/JPY Currency Outlook:December 12, 2013

GBP/JPY Daily Outlook

Daily Pivots: (S1) 167.04; (P) 168.19; (R1) 168.87;

Intraday bias in GBP/JPY remains neutral for the moment and more consolidation would be seen below 170.05 temporary top. But again, near term outlook stays bullish as long as 165.86 support holds. Above 170.05 will target 161.8% projection of 147.61 to 159.98 from 156.63 at 173.72 next. However, break of 165.85 will indicate short term topping, on bearish divergence condition in 4 hours MACD and bring deeper pull back to 55 days EMA (now at 161.79).

In the bigger picture, there is no clear sign of topping and indeed, the cross might be building upside momentum again. We'd be cautious on resistance from 38.2% retracement of 251.09 to 116.83 at 168.11 to bring medium term topping. But sustained break there will pave the way to 50% retracement at 183.96 and above.
GBP/JPY Hourly Chart" title="GBP/JPY Hourly Chart" width="600" height="600">
GBP/JPY Daily Chart" title="GBP/JPY Daily Chart" width="600" height="600">

EUR/JPY Daily Outlook

Daily Pivots: (S1) 140.85; (P) 141.26; (R1) 141.62;

The break of 140.99 minor support aurges that a short term top is possibly in place at 142.16 in EUR/JPY. Intraday bias is mildly on the downside and deeper pull back would be seen back to 135.48 support. Above 142.16, though, will resume recent rally and would target upper channel resistance (now at 142.60).

In the bigger picture, medium term up trend from 94.11 is still in progress and EUR/JPY seems to be regaining upside momentum again. Sustained break of 61.8% retracement of 169.96 to 94.11 at 140.98 will pave the way to 76.4% retracement at 152.59. Meanwhile strong bounce off from 140.98 will bring pull back to 124.95 support and possibly below before staging another up trend.
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">