GPB/JPY And EUR/JPY Daily Outlook: September 14, 2012

Daily Pivots: (S1) 124.56; (P) 124.99; (R1) 125.58;

GBP/JPY rises to as high as 126.31 sop far today and break of 126.19 resistance indicate that rise from 120.82 has resumed. As noted before, whole rally from 118.82 is still in progress. Intraday bias is now back on the upside and further ally should be seen 100% projection of 118.82 to 125.82 from 120.82 at 127.82 next. On the downside, break of 124.41 support is needed to signal short term topping. Otherwise, outlook will stay bullish even in case of retreat.

In the bigger picture, at this point, we'd like to maintain that price actions from 116.83 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. But this is far from being certain. 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.


EUR/JPY Daily Outlook

Daily Pivots: (S1) 99.82; (P) 100.30; (R1) 101.10;

EUR/JPY jumps to as high as 10..39 so far today and broke mentioned 38.2% retracement of 111.43 to 94.11 at 100.72. Intraday remains on the upside for 101.62 resistance. Break will have further bullish implication and should target 61.8% retracement at 104.81 next. On the downside, break of 99.52 support will indicate short term topping and will bring lengthier consolidation before another rise.

In the bigger picture, as noted before, fall from 139.21 is viewed as part of the down trend from 2008 high of 169.96. Such pattern is seen as a falling wedge with bullish convergence condition in weekly MACD. Current development is raising the odd that such down trend is finished at 94.11. Break of 101.62 will be another sign that affirm this bullish view and will turn focus back to 111.43 key resistance for confirmation. Before, that, another decline could be seen but even in that case, we'll expect strong support above 88.96 to contain downside, form a major bottom and bring reversal.