Intraday Bias In EUR/JPY And GBP/JPY On Upside: March 12, 2013

Daily Pivots: (S1) 143.00; (P) 143.39; (R1) 143.98;

Intraday bias in GBP/JPY remains on the upside for the moment and the rebound from 137.87 would extend to retest 147.97 resistance. Though, sustained break there is needed to confirm resumption of recent rally. Otherwise, risk of another fall remains. Meanwhile, below 141.44 will flip bias back to the downside to 38.2% retracement of 118.82 to 147.97 at 136.83 and below to extend the correction from 147.97.

In the bigger picture, medium term fall from 163.05 has already completed at 116.83. It's too early to conclude reversal of the long term down trend from 251.09 (2007 high). But rise from 116.83 should at least be a move at the same degree as fall from 163.05. Thus, medium term rise is now expected back to 163.05. We'll stay bullish as long as 133.48 resistance turned support holds.
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EUR/JPY Daily Outlook

Daily Pivots: (S1) 124.89; (P) 125.28; (R1) 125.97;

Intraday bias in EUR/JPY remains on the upside and rebound from 118.71 would extend to retest 127.70 resistance. Break there will confirm resumption of whole rise from 94.11 and should target 130 psychological level next. On the downside, below 123.79 minor support will suggest that consolidation from 127.70 is still in progress and has started another leg for 118.71 and below. But in that case, we'd expect downside to be contained by 117.04 (38.2% retracement of 100.32 to 127.70 at 117.24) to complete the consolidation.

In the bigger picture, whole down trend from 169.96 (2008 high) has already completed at 94.11 , on bullish convergence condition in weekly MACD. The rise isn't finished yet, and is expected to continue to 50% retracement of 169.96 to 94.11 at 132.03 next. Eventually, such a rise would likely extend to 139.21 resistance and above. We'll stay bullish as long as 111.43 resistance turned support holds.
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