GPB/JPY And EUR/JPY: Currency Outlook: January 20, 2014

GBP/JPY Daily Outlook

Daily Pivots: (S1) 170.34; (P) 171.10; (R1) 172.04;

The GBP/JPY is struggling around 4 hours 55 EMA for the moment and intraday bias stays neutral. With 173.12 resistance intact, near term outlook stays bearish and fall from 174.84 is expected to resume sooner or later. Break of 168.34 support will target 166.57 and below. However, break of 173.12 will indicate that such correction is completed already and bring retest of 174.84 high.

In the bigger picture, the up trend from 116.83 is still in progress and there is no sign of reversal yet. Break of 159.98 resistance turned support is needed to indicate medium term topping. Otherwise, outlook will stay bullish. The up trend from 116.83 should target 50% retracement retracement of 251.09 to 116.83 at 183.96 and above.
GBP/JPY Hourly Chart" title="GBP/JPY Hourly Chart" width="600" height="600">
GBP/JPY Daily Chart" title="GBP/JPY Daily Chart" width="600" height="600">

EUR/JPY Daily Outlook

Daily Pivots: (S1) 140.75; (P) 141.45; (R1) 141.94;

The EUR/JPY's decline extends today and reaches as low as 140.31 so far. The break of 140.49 confirms resumption of fall from 145.68. Intraday bias remains on the downside for 138.45 support and below. On the upside, break of 142.90 resistance is needed to confirm completion of the fall. Otherwise, near term outlook will stay mildly bearish.

In the bigger picture, medium term up trend from 94.11 is still in progress and there is no clear sign of topping yet. Further rally is expected to 76.4% retracement of 169.96 to 94.11 at 152.59 and above. And, break of 135.50 resistance turned support is needed to be the first sign of medium term topping. Otherwise, outlook will stay bullish.
EUR/JPY Hourly Chart" title="EUR/JPY Hourly Chart" width="600" height="600">
EUR/JPY Daily Chart" title="EUR/JPY Daily Chart" width="600" height="600">