GBP/JPY Daily Outlook
Daily Pivots: (S1) 187.77; (P) 188.74; (R1) 190.19;
With 187.29 minor support intact, further rise is still mildly in favor in GBP/JPY for 190 psychological level. Sustained break will target next long term fibonacci level at 199.80. Meanwhile, momentum as seen in 4 hours MACD isn't too convincing. And the cross looks overbought in daily chart. Break of 187.29 would indicate short term topping and could trigger pull back to 181.09/184.31 support zone first.
In the bigger picture, the up trend from 116.83 is still in progress for 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. On the downside, break of 168.01 support is needed to confirm medium term topping. Otherwise, outlook will stay bullish in case of pull back.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 147.95; (P) 148.87; (R1) 149.55;
EUR/JPY retreated sharply after hitting 149.76. But at this point, further rise is still expected as long as 147.02 support holds. Above 149.76 will target next fibonacci level at 152.59. However, considering bearish divergence condition in 4 hours MACD, break of 147.02 will indicate near term reversal and could bring deeper pull back to 142.08/144.21 support zone.
In the bigger picture, the up trend from 94.11 long term bottom is still in progress for 76.4% retracement of 169.96 to 94.11 at 152.59 next. Break of 152.59 will target a test on 169.96 (2008 high). On the downside, break of 134.13 is needed to confirm medium term reversal. Otherwise, outlook will stay bullish.
