GPB/JPY And EUR/JPY Daily Outlook: October 30, 2012

Daily Pivots: (S1) 127.53; (P) 127.92; (R1) 128.28

The breach of 127.09 minor support and mixes up the near-term outlook. Intraday bias is now mildly on the downside for deeper decline. So far, as long as 124.72 support holds, rebound from 118.82 is still in favor to continue. Above 128.45 minor resistance will turn bias back to the upside for 129.64 first. Though, break of 124.72 is a sign of reversal and will turn outlook bearish.

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.
GBP/JPY H4" title="GBP/JPY H4" width="482" height="466">
GBP/JPY" title="GBP/JPY" width="482" height="409">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 102.61; (P) 102.88; (R1) 103.24

Intraday bias is mildly on the downside as EUR/JPY's correction from 104.58 continues. Deeper fall might be seen. But we'll stay near-term bullish as long as 100.14 support holds and expect rise from 94.11 to resume later. Above 103.39 minor resistance will flip bias back to the upside. Break of 104.58 should target 111.43 key resistance.

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.
EUR/JPY H4" title="EUR/JPY H4" width="482" height="469">
EUR/JPY" title="EUR/JPY" width="482" height="444">