GPB/JPY And EUR/JPY Outlook: January 24, 2013

Daily Pivots: (S1) 139.50; (P) 140.16; (R1) 141.08

GBP/JPY recovers after a brief breach of 139.39 support and intraday bias remains neutral. At this point, price actions from 144.80 is view as a brief consolidation pattern only and recent rise is still in favor to resume soon. Above 144.80 resistance will target 150 psychological level next. Though, break of 139.29 will bring deeper pull back, probably to 55 days EMA (now at 136.35) before staging another rally.

In the bigger picture, medium-term fall from 163.05 has completed at 116.83 already. It's a bit early to conclude reversal of the long-term downtrend from 251.09 (2007 high). But rise from 116.83 should at least be a move at the same degree as fall from 163.05. Thus, medium-term rise is now expected back to 163.05. We'll stay bullish as long as 133.48 resistance turned support holds.
GBP/JPY H4" title="GBP/JPY H4" width="579" height="394">
GBP/JPY" title="GBP/JPY" width="579" height="384">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 117.26; (P) 117.79; (R1) 118.55

EUR/JPY recovers today as it drew some support above 116.146. Intraday bias remains neutral. Price actions from 120.70 is viewed as a brief consolidation pattern only and recent rise is expected to resume soon. Sustained break of 120 psychological level will target next medium-term Fibonacci level at 123.08. Though, a break of 116.46 will bring deeper pull back to 113.54 support and below before staging another rally.

In the bigger picture, whole downtrend from 169.96 (2008 high) has completed at 94.11 already, on bullish convergence condition in weekly MACD. A medium-term rally is now expected that heads back to 123.31 (38.2% retracement of 169.96 to 94.11 at 123.08) first. Break will target 61.8% retracement at 140.98. And, we'll stay bullish as long as 104.58 resistance turned support holds.
EUR/JPY H4" title="EUR/JPY H4" width="579" height="468">
EUR/JPY" title="EUR/JPY" width="579" height="411">