GPB/JPY And EUR/JPY: June 28, 2013

Daily Pivots: (S1) 149.38; (P) 149.99; (R1) 150.64;

GBP/JPY recovers strongly today but is kept below 151.92 so far and intraday bias remains neutral first. Break of 151.92 should affirm the case that correction from 156.77 has completed at 147.10 already. In such case, stronger rise should be seen to 154.22 resistance and above. Though, below 148.85 will bring another fall to below 147.10 to extend the correction instead.

In the bigger picture, a medium term top is in place at 156.77 on bearish divergence condition in daily MACD. Deeper pull back could be seen to 38.2% retracement of 118.82 to 156.77 at 142.27. Strong support would likely be seen at 140.37 to bring rebound, at least on first attempt. Overall, we'd still expect whole rise from 116.83 medium term bottom to resume later to 163.05 resistance and above after completing the correction.
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EUR/JPY Daily Outlook

Daily Pivots: (S1) 127.38; (P) 127.87; (R1) 128.72;

Despite dipping to 126.57, EUR/JPY quickly rebounded and the break of 128.44 minor resistance indicates that retreat fro 129.90 has completed already. Intraday bias is back on the upside for 129.90 first. Break there will also confirm completion of whole correction from 133.80 at 124.95. In that case, stronger rise should be seen to 100% projection of 124.95 to 129.90 from 126.57 at 131.52 next. On the downside, below 127.90 minor support will turn bias neutral again.

In the bigger picture, current development argues that the medium term up trend from 94.11 has topped out at 133.80 on bearish divergence condition in daily MACD. Such correction could extend with another fall to target 119.10 cluster support (38.2% retracement of 94.11 to 133.80 at 118.63). Strong support would be seen there, at least on initial attempt. But, break will target 61.8% retracement at 109.27. Nonetheless, considering the five wave structure of the rise from 94.11, we'd expect another medium term rally after completing the correction.
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