GPB/JPY And EUR/JPY Daily Outlook: April 27, 2012

Daily Pivots: (S1) 130.52; (P) 131.06; (R1) 131.61;

At this point, GBP/JPY continues to stay in tight range below 131.79 and intraday bias remains neutral. Another rise is mildly in favor with 129.83 minor support intact. Above 131.79 will target 133.48 first. Break will confirm resumption of whole rise from 117.29. Though, below 129.83 will suggest that rebound from 127.10 is finished and flip bias back to the downside for 127.10 and possibly below to extend the correction from 133.48.

In the bigger picture, with 126.54 support intact, rise from 117.29 should still be in progress. Current development is still in line with the view that choppy decline from 163.05 is finished at 116.83 already. We'd favor further rise to 140.02 key resistance level next. Decisive break there will confirm this bullish case and target 163.05 key resistance next. Nonetheless, another fall and break of 126.54 will put focus back to 116.83 low instead.
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EUR/JPY Daily Outlook

Daily Pivots: (S1) 106.49; (P) 107.07; (R1) 107.66;

The break of 106.31 minor support argues that rebound from 104.61 is already finished at 108.00 and intraday bias is flipped back to the downside for retesting this support first. Break will resume the whole decline from 111.43. On the upside, though, above 108.00 will revive the case that correction from 111.43 is finished at 104.61 already. In such case, stronger rebound would be seen back to retest 111.43/57 resistance zone.

In the bigger picture, the question remains on whether down trend from 169.96 has completed 97.03 and the picture is unclear. There were loss of medium term downside momentum as seen in convergence condition in weekly MACD. But rebound from 97.03 lacked sustainable strength to break through 111.57 yet. We'll stay neutral first. Note that firstly, while another fall cannot be ruled out yet, but the break of 97.03 could be marginal. Meanwhile, sustain trading above 111.57 should raise much odds for the case that EUR/JPY's trend is reversing.

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