GPB/JPY And EUR/JPY Daily Outlook: January 07, 2013

Daily Pivots: (S1) 140.76; (P) 141.29; (R1) 142.16

Intraday bias in GBP/JPY remains neutral for the moment and some more consolidations could be seen. But a recent rally should resume sooner rather than later as long as 139.50 minor support holds. Above 142.73 will target next medium-term retracement level at 145.39. However, break of 139.50 will indicate short-term topping and bring deeper pull back before staging another rally.

In the bigger picture, the strong break of 140.02 (50% retracement of 163.05 to 116.83 at 139.94) indicates that whole medium term fall from 163.05 has completed at 116.83 already. It's a bit early to conclude reversal of the long-term down trend from 251.09 (2007 high). But rise from 116.83 should at least be a move at the same degree as fall from 163.05. Thus, medium-term rise is now expected back to 163.05. We'll stay bullish as long as 133.48 resistance turned support holds.
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GBP/JPY" title="GBP/JPY" width="631" height="405">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 114.20; (P) 114.81; (R1) 115.79

Intraday bias in EUR/JPY remains neutral for the moment as consolidation from 115.98 continues. Recent rally should resume sooner rather than later as long as 113.18 minor support holds. Above 115.98 will target 161.8% projection of 94.11 to 104.58 from 100.32 at 117.26 next. Break should send EUR/JPY through 120 psychological level towards next medium-term fibo level at 123.08. Though, below 113.18 minor support would indicates short term topping and bring deeper pull back, possibly back towards 110 psychological level before staging another rally.

In the bigger picture, the strong break of 111.43 resistance should have confirmed long term trend reversal in EUR/JPY. That is, whole down trend from 169.96 (2008 high) has completed at 94.11 already, on bullish convergence condition in weekly MACD. A medium-term rally is now expected that heads back to 123.31 (38.2% retracement of 169.96 to 94.11 at 123.08) and above. And, we'll stay bullish as long as 104.58 resistance turned support holds.
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EUR/JPY" title="EUR/JPY" width="631" height="365">