GPB/JPY And EUR/JPY Daily Outlook: April 11, 2012

Daily Pivots: (S1) 128.90; (P) 129.41; (R1) 129.99

GBP/JPY's choppy fall from 133.48 is still in progress and deep decline could be seen. But we'd expect a downside to be contained by 126.54 support and bring another rally. Above 130.22 minor resistance will argue that correction from 133.48 has finished and flip bias back to the upside for retesting 133.48 first. However, decisive break of 126.54 will open up the case of completion of rebound from 117.29 and will bring deeper fall to 61.8% retracement of 117.29 to 133.48 at 123.47 and below.

In the bigger picture, recent development argues that choppy decline from 163.05 is completed at 116.83 already. Focus remains on 140.02 and sustained break there will confirm this bullish case. More importantly, this will also signal completion of the whole downtrend from 2007 high of 251.09. In such case, stronger rise should be seen back to retest on 163.05 resistance next. Though, failure below 140.02 resistance will indicate that GBP/JPY is merely in sideways trading pattern between 116.83 and 140.02.
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EUR/JPY Daily Outlook

Daily Pivots: (S1) 104.84; (P) 106.15; (R1) 106.84

Despite a brief breach of 105.64 support, there was no follow through selling so far. We'll turn neutral first and continue to slightly favor the case for rebound from 97.03 to extend. Above 107.47 minor resistance will indicate that pull back from 111.43 is finished and will flip back to the upside for retesting this resistance. However, sustained break of 105.64 will pave the way to 61.8% retracement of 97.03 to 111.43 at 102.53 and below.

In the bigger picture, EUR/JPY lost much momentum ahead of mentioned 111.57 resistance and the development dampen the case that EUR/JPY has bottomed out. Decisive break of above-mentioned 105.64 support will in turn argue that whole downtrend from 169.96 is still in progress for another low below 97.03. Meanwhile, a sustained break of 111.57 will affirm the case of medium-term bottoming and should at least push for a test on 123.31 resistance next.
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