GPB/JPY And EUR/JPY Daily Outlook: April 3, 2012

Daily Pivots: (S1) 130.69; (P) 131.97; (R1) 132.77

GBP/JPY continues to be bounded in range below 133.48 and intraday bias remains neutral. Deeper decline might be seen as such consolidation extends. But downside is expected to be contained by 126.54 support and bring rebound. Rise from 117.29 is expected to resume sooner or later and break of 133.48 should target a test on 140.02 key resistance level next.

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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GBP/JPY" title="GBP/JPY" width="1274" height="821">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 108.46; (P) 109.80; (R1) 110.64

EUR/JPY continues to stay in tight range below 111.43 and intraday bias remains neutral. Such consolidation could extend with deeper fall. But downside should be contained by 105.64 support and bring rebound. Rally from 97.03 is expected to resume sooner or later. Decisive break of 111.57 resistance will confirm that fall from 123.31 has completed and should target a test on this key resistance next.

In the bigger picture, a medium term bottom is at least in place at 97.03 in EUR/JPY with bullish convergence condition in weekly MACD. Break of 111.57 resistance will affirm the case of trend reversal and should at least push EUR/JPY for a test on 123.31 resistance. Break there will argue that whole down trend from 2008 high of 169.96 is completed and reversed. Though, failure to take out 123.31 and reversal from there will likely bring some sideways trading between 97.03/123.31 in medium term.
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EUR/JPY" title="EUR/JPY" width="1274" height="821">