GPB/JPY And EUR/JPY Daily Outlook: January 22, 2013

Daily Pivots: (S1) 141.39; (P) 142.22; (R1) 142.71

GBP/JPY weakens again today as consolidation from 144.80 extends. Intraday bias stays neutral first. Deeper retreat cannot be ruled out but downside is expected to be contained by 139.39 support and bring rise resumption eventually. Above 145.39 will target 150 psychological level next. Though, break of 139..39 will bring deeper pull back, probably to 55 days EMA (now at 136.35) before staging another rally.

In the bigger picture, the medium-term fall from 163.05 has completed at 116.83 already. It's a bit early to conclude reversal of the long-term downtrend from 251.09 (2007 high). But a 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="600" height="600">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 118.71; (P) 119.47; (R1) 120.07

EUR/JPY dips mildly today and intraday bias remain neutral as consolidation from 127.70 extends. As noted before, break of 116.46 support is needed to signal a short-term topping. Otherwise, outlook stays bullish. Sustained break of 120 psychological level will target the next medium-term Fibonacci level at 123.08. Though, break of 116.46 will bring deeper pull back to 113.54 support and below before staging another rally.

In the bigger picture, whole downtrend 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) first. Break will target 61.8% retracement at 140.98. And, we'll stay bullish as long as 104.58 resistance turned support holds.
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EUR/JPY" title="EUR/JPY" width="600" height="600">