GBP/JPY Daily Outlook
Daily Pivots: (S1) 119.85; (P) 120.94; (R1) 121.56;
GBP/JPY drops sharply to as low as 120.05 so far. The break of 120.29 support indicate that consolidation pattern from 119.37 is already finished with three waves to 122.76 already. Intraday bias is cautiously on the downside for 119.37 first. Break will confirm resumption of recent decline from 127.30 and should target 61.8% projection of 127.30 to 119.37 from 122.76 at 117.85, and then 116.83 key support. On the upside, break of 122.76 resistance is needed to invalidate this view. Otherwise, outlook will remain cautiously bearish even in case of recovery.
In the bigger picture, there is no sign of reversal in GBP/JPY as it's still staying well below the falling 55 weeks EMA (now at 127.04). The down trend from 2007 high of 251.09 is still expected to continue to 61.8% projection of 215.87 to 118.81 from 163.05 at 103.06, which is close to 100 psychological level. On the upside, break of 130.83 resistance is needed to be the first signal of medium term reversal. Otherwise, medium term outlook will remain bearish even in case of further rebound.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 100.46; (P) 101.12; (R1) 101.54;
EUR/JPY's recent decline resumed by taking out 10104 and dropped to new decade low of 100.35 so far. Intraday bias is back on the downside for 100 psychological level first. Break will target 61.8% projection of 123.31 to 100.74 from 111.57 at 97.62 next. On the upside, break of 102.53 resistance is needed to signal short term bottoming. Otherwise, near term outlook will remain bearish even in case of recovery.
In the bigger picture, EUR/JPY moved further away from the falling 55 weeks EMA and affirmed the case that downtrend from 2008 high of 169.96 is still in progress. 100 psychological level should be taken out eventually towards 100% projection of 139.21 to 105.42 from 123.31 at 89.52, which is close to 88.96 all time low. On the upside, break of 111.57 resistance is needed to be the first signal of reversal. Otherwise, we'll continue to stay bearish in the cross.
