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

Daily Pivots: (S1) 131.88; (P) 132.17; (R1) 132.69

Intraday bias in GBP/JPY remains neutral for the moment and some consolidations would be seen below 132.93. Further rally would remain in favor as long as 130.45 minor support holds. But we'd be aware of strong resistance from 133.48 to limit upside and bring reversal. Meanwhile, break of 130.45 will indicate that a short-term top is at least formed and would bring decline back towards 125.67 support.

In the bigger picture, at this point, we'd like to maintain that price actions from 116.83 (2011 low) are corrective in nature so far. Rise from 118.82 could be the third leg of the pattern from 116.83 and might target 133.48 and above. After all, the likely scenario is that we'll see more range trading between 116.83 and 140.02 (50% retracement of 163.05 to 116.83 at 139.94) ahead, before an eventual downside breakout. We'll favor this view as long as 140.02 resistance holds.
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GBP/JPY" title="GBP/JPY" width="649" height="364">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 106.15; (P) 106.40; (R1) 106.82

Intraday bias in EUR/JPY remains neutral for the moment and some more consolidations would be seen below 107.95 short term top. Nonetheless, retreat should be contained by 105.27 support and bring another rally. Above 107.95 will target 100% projection of 94.11 to 104.58 from 100.32 at 110.79 next, which is close to 111.43 key resistance. Though, break of 105.27 will dampen our bullish view and turn focus back to 100.32 key near term support instead.

In the bigger picture, we're favoring the case that whole downtrend from 169.96 (2008 high) has completed at 94.11 already, on bullish convergence condition in weekly MACD. The sustained break above 55 weeks EMA affirmed this view. Break of 111.43 resistance will confirm this bullish case and bring further medium-term rise to 123.31 (38.2% retracement of 169.96 to 94.11 at 123.08) and above. And, we'd favor this bullish scenario as long as 100.32 support holds.
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EUR/JPY" title="EUR/JPY" width="649" height="364">