GBP/JPY Daily Outlook
Daily Pivots: (S1) 181.21; (P) 182.93; (R1) 183.90;
In spite of yesterday's retreat, GBP/JPY is staying above 181.07 support. Thus, further rally is still expected. Current up trend should target 190 psychological level next. However, break of1 01.87 will indicate short term topping and would bring deeper pull back before staging another rise.
In the bigger picture, the up trend from 116.83 has just resumed. Sustained break of 50% retracement retracement of 251.09 to 116.83 at 183.96 will pave the way to 61.8% retracement 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) 143.18; (P) 143.84; (R1) 145.10;
EUR/JPY's rise from 134.13 is still in progress despite a mild retreat. Near term outlook stays bullish and current rally should target 145.68 key resistance next. Break will resume larger up trend from 94.11. On the downside, however, break of 142.08 will indicate short term topping and bring deeper pull back before staging another rise.
In the bigger picture, recent development suggests that the consolidation pattern from 145.68 is completed at 134.13 after breaching 55 weeks EMA briefly. The up trend from 94.11 long term bottom is possibly resuming. Break of 145.68 will target 76.4% retracement of 169.96 to 94.11 at 152.59 next. On the downside, break of 134.13 will extend the corrective pattern from 145.68 to 38.2% retracement of 94.11 to 145.68 at 125.98.
