Neutral Intraday Bias In GPB/JPY, EUR/JPY Losing Momentum: May 23, 2013

Daily Pivots: (S1) 154.49; (P) 155.30; (R1) 156.05;

The intraday bias in the GBP/JPY remains neutral for now, while the as consolidation from 156.77 continues. Another retreat could be seen, but downside should be contained by 153.26 support, and bring rise resumption. Above 156.77 will target 100% projection of 125.67 to 147.97 from 140.37 at 162.67, which is close to 163.05 key resistance. On the downside, though, a break of 153.26 will indicate short term topping and bring deeper pull back.

The medium term rise from 116.83 is still in progress. As noted previously, whether such rally is impulsive or corrective in nature, it's at least a move in the same degree as a fall from 163.05. We expect the current rise to extend to 163.05 resistance and above. We'll stay bullish as long as 146.42 support holds.
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EUR/JPY Daily Outlook

Daily Pivots: (S1) 131.79; (P) 132.80; (R1) 133.65;

The EUR/JPY rose as high as 133.80 but seems to be losing some momentum. As long as 131.00 minor support holds, further rally is still in favor for 61.8% projection of 100.32 to 127.70 from 119.10 at 136.02 next. Though, break of 131.00 will indicate short term topping and would likely bring deeper pull back towards 127.05 support.

In the bigger picture, whole down trend from 169.96 (2008 high) has completed at 94.11 already, on bullish convergence condition in weekly MACD. Rise from there has already met mentioned 50% retracement of 169.96 to 94.11 at 132.03, and there is no clear sign of reversal so far. Such a rally should now extend through 139.21 resistance to 61.8% retracement at 140.98. A break of 119.10 support is needed to confirm medium term topping. Otherwise, outlook will stay bullish.
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