GPB/JPY And EUR/JPY Daily Outlook: November 15, 2012

Daily Pivots: (S1) 126.21; (P) 126.86; (R1) 127.74

GBP/JPY jumps further to as high as 128.32 so far today and intraday bias remains on the upside for a test on 129.60/64 resistance zone first. Break will confirm resumption of whole rebound from 118.82. On the downside, below 126.93 minor support will turn bias neutral first. In any case, as long as 125.67 support holds, rebound from 118.82 is still in favor to continue sooner or later.

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="926" height="610">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 101.19; (P) 101.80; (R1) 102.79

EUR/JPY jumped further to as high as 103.20 so far today and intraday bias remains on the upside for a test on 104.58 resistance first. Break will confirm resumption of whole rally from 94.11. On the downside, below 102.00 minor support will turn bias neutral again. 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.

In the bigger picture, we're favoring the case that whole downtrend from 169.96 (2008) has completed at 94.11 already, on bullish convergence condition in weekly MACD. Break of 111.43 resistance 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="926" height="610">