GPB/JPY Stays In Tight Range Above 124.17 Temporary Low

Daily Pivots: (S1) 124.31; (P) 124.69; (R1) 124.99

GBP/JPY continues to stay in tight range above 124.17 temporary low for the moment and intraday bias remains neutral for some more consolidation. Nonetheless, upside of recovery should be limited by 126.45 and bring fall resumption. Below 124.17 will extend recent decline from 133.48 to 61.8% retracement of 116.83 to 133.48 at 123.19 next. Sustained break there will target a test on 116.83/117.29 support zone next. On the upside, though, note that break of 126.45 resistance will indicate short-term bottoming and stronger rebound should then be seen to 127.10 resistance and above.

In the bigger picture, rebound from 116.83 should have completed with three waves up to 133.48. The corrective structure in turn argue that medium-term choppy fall from 163.05 is still in progress. Below 116.83 will target 110 psychological level and below. Meanwhile, sustained break of 127.10 resistance will raise the odds that another high above 133.48 would be seen. But after all, rebound from 116.83 will still be treated as a correction and strong resistance should be seen below 140.02 even in that case.
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EUR/JPY Daily Outlook

Daily Pivots: (S1) 99.37; (P) 99.80; (R1) 100.09

EUR/JPY continues to stay in tight range above 99.38 temporary low for the moment and some more consolidations could be seen. But after all, upside is expected to be limited by 102.11 resistance and bring fall resumption. Below 99.38 will extend recent decline from 111.43 to retest 97.03 low next. Nonetheless, break of 102.11 resistance will indicate short-term bottoming and would then bring stronger rebound back to 104.61 support turned resistance.

In the bigger picture, the down trend from 169.96 is still in progress and fall from 111.43 is likely resuming such downtrend. Break of 97.03 will target 61.8% projection of 123.31 to 97.03 from 111.43 at 95.18 and below. However, note again that we're favoring the case that pattern from 139.21 is a falling wedge with bullish convergence condition in weekly MACD. Fall from 111.43 should be the last leg in such pattern. Hence, we'll expect strong support below 95.18 to contain downside, form a major bottom and bring reversal. So, focus will be on reversal signal below 95.18.
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