GPB/JPY And EUR/JPY Daily Currency Outlook: August, 30 2013

Daily Pivots: (S1) 151.75; (P) 152.20; (R1) 152.91;

No change in GBP/JPY's outlook and deeper decline is still expected for the 147.61 support. A break of 147.61 will extend the correction pattern from 156.77 towards the next medium term of the fibo level at 142.27. On the upside, in case of another rise, we'd expect a strong resistance below 156.77 and reversal to extend the consolidation from 156.77.

In the bigger picture, a medium term top is in place at 156.77 on bearish divergence condition in daily MACD. Deeper pull back could be seen to 38.2% retracement of 118.82 to 156.77 at 142.27, as consolidation from there extends. Strong support would likely be seen at 140.37 to bring a rebound, at least on first attempt. Overall, we'd still expect a whole rise from the 116.83 medium term bottom to resume later to the 163.05 resistance and above after completing the correction.


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GBP/JPY" width="600" height="600">


EUR/JPY

Daily Pivots: (S1) 129.95; (P) 130.23; (R1) 130.49;

EUR/JPY consolidates in tight range today but outlook is unchanged and deeper decline is in favor. Break of 127.96 will suggest that the third leg of the pattern has started and should target 124.95. In case of another rise, we'd expect strong resistance below 133.80 to bring another fall to extend the consolidation.

In the bigger picture, the medium term up trend from 94.11 has topped out at 133.80 on the bearish divergence condition in daily MACD. Consolidation from there could extend with another fall to target 119.10 cluster support (38.2% retracement of 94.11 to 133.80 at 118.63). A strong support would be seen there, at least on initial attempt. But, a break will target 61.8% retracement at 109.27. Nonetheless, considering the five wave structure of the rise from 94.11, we'd expect another medium term rally after completing the correction.

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EUR/JPY" width="600" height="600">