GBP/JPY Daily Outlook
Daily Pivots: (S1) 169.68; (P) 170.39; (R1) 171.44;
GBP/JPY failed to sustain below 169.53 key support level and recovered strongly. Intraday bias is turned neutral first. Sustained break of 169.53 will carry larger bearish implication and will target 161.8% projection of 175.36 to 170.42 from 173.95 at 165.95. Meanwhile, above 171.67 minor resistance will turn bias back to the upside for 173.95 resistance first.
In the bigger picture, the up trend from 116.83 (2011 low) continued to lose upside momentum. This could be seen in bearish divergence condition in daily MACD. And, weekly MACD continued to trend down. Sustained break of 169.53 support should confirm medium term topping at 1175.36 and turn outlook bearish for 38.2% retracement of 116.83 to 175.36 at 153.00. Before that, another rally cannot be ruled out. But in that case, we'd expect strong resistance below 50% retracement retracement of 251.09 to 116.83 at 183.96 to bring reversal.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 136.07; (P) 136.53; (R1) 137.18;
EUR/JPY recovers ahead of 135.72 support and intraday bias is turned neutral again. Focus remains on 135.50 key support level. Decisive break there will carry larger bearish implication and would target 131.21 support next. On the upside, break of 138.27 is needed to indicate reversal. Otherwise, outlook will stay cautiously bearish in case of recovery.
In the bigger picture, loss of upside momentum was seen in bearish divergence condition in weekly MACD. However, EUR/JPY is so far holding above 135.50 key support. Thus, there is no confirmation of trend reversal yet. Break of 145.68 will extend the up trend from 94.11 towards 76.4% retracement of 169.96 to 94.11 at 152.59 before topping. Meanwhile, break of 135.50 will confirm reversal and target 124.95 support.
