GPB/JPY And EUR/JPY Daily Outlook: June 1, 2012

Daily Pivots: (S1) 119.68; (P) 121.08; (R1) 122.03

Intra-day bias in GBP/JPY remains on the downside and current fall from 133.48 should extend to retest 116.83/117.29 support zone next. On the upside, above 122.46 minor resistance will turn bias neutral and bring consolidation. But recovery should be limited by 124.64 resistance and bring fall resumption.

In the bigger picture, rebound from 116.83 should have completed with three waves up to 133.48. The corrective structure in turn argue that medium term choppy fall from 163.05 is still in progress. Below 116.83 will target 110 psychological level and below. Meanwhile, sustained break of 127.10 resistance will raise the odds that another high above 133.48 would be seen. But after all, rebound from 116.83 will still be treated as a correction and strong resistance should be seen below 140.02 even in that case.
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GBP/JPY" title="GBP/JPY" width="676" height="411">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 98.90; (P) 99.42; (R1) 99.91

EUR/JPY dropped to as low as 96.50 so far and broken mentioned 97.03 support while indicate resumption of larger down trend. Intra-day bias remains on the downside for next projection level at 95.18. On the upside, above 98.02 minor resistance will turn bias neutral and bring consolidations. But break of 100.20 resistance will be needed to indicate short-term bottoming. Otherwise, outlook will remain bearish even in case of recovery.

In the bigger picture, the downtrend from 169.96 is still in progress and fall from 111.43 is likely resuming such downtrend. Break of 97.03 will target 61.8% projection of 123.31 to 97.03 from 111.43 at 95.18 and below. However, note again that we're favoring the case that pattern from 139.21 is a falling wedge with bullish convergence condition in weekly MACD. Fall from 111.43 should be the last leg in such pattern. Hence, we'll expect strong support below 95.18 to contain downside, form a major bottom and bring reversal. So, focus will be on reversal signal below 95.18.
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EUR/JPY" title="EUR/JPY" width="676" height="411">