GPB/JPY And EUR/JPY Daily Outlook: November 08, 2012

Daily Pivots: (S1) 127.22; (P) 128.02; (R1) 128.66

The consolidation pattern from 129.64 is still in progress and deeper fall could be seen. But, we'll stay bullish as long as 124.72 support holds and expect rise from 118.82 to continue later. Break of 129.64 will target upper channel resistance (now at 130.73).

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="637" height="462">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 101.48; (P) 102.45; (R1) 103.10

Intraday bias in EUR/JPY remains mildly on the downside. The corrective pull back from 104.58 is still in progress and could extend lower. But after all, we'll stay near-term bullish as long as 100.14 support holds and expect rise from 94.11 to resume later. Above 103.99 minor resistance will indicate that recent rally from 94.11 is finally resuming for another high above 104.58.

In the bigger picture, we're favoring the case that whole down trend from 169.96 (3008) has completed at 94.11 already, on bullish convergence condition in weekly MACD. Focus is now on 111.43 key resistance level. Break will confirm this bullish case and bring further medium-term rise to 123.31 and above (38.2% retracement of 169.96 to 94.11 at 123.08). And, we'd favor this bullish scenario as long as 100.14 support holds. Though, considering that EUR/JPY can't take out 55 weeks EMA decisively yet, break of 100.14 will favor another low below 94.11 instead.
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EUR/JPY" title="EUR/JPY" width="637" height="462">