GBP/JPY Daily Outlook
Daily Pivots: (S1) 168.05; (P) 169.59; (R1) 171.18;
GBP/JPY dropped further to as low as 168.01 so far and took out 169.34 key support level. The development suggests medium term topping at 180.70. Intraday bias remains on the downside and current fall from 180.70 should extend to 163.87 support next. On the upside, above 171.14 minor resistance will turn bias neutral and bring consolidations first before staging another decline.
In the bigger picture, the break of 169.34 support indicates that the up trend from 116.83 low has made a medium term top at 180.70 already, on bearish divergence condition in daily and weekly MACD. Deeper correction should be seen to 38.2% retracement of 116.83 to 180.70 at 156.30 first. While we'd expect this up trend to resume later, there should be a lengthy medium term consolidation first.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 135.38; (P) 135.71; (R1) 136.30;
As noted before, the breach of 135.50 support argues that the medium term trend is possibly reversing. Intraday bias remains on the downside. Sustained trading below 135.50 will confirm this case and target 131.21 support next. On the upside, above 136.54 resistance will indicate strong support from 135.50 and will turn bias neutral first. We'll gauge the strength of the rebound then.
In the bigger picture, sustained break of 135.50 key support level will indicate that up trend from 94.11 long term bottom has made a medium term top. In the case, deeper correction should be seen to 38.2% retracement of 94.11 to 145.68 at 125.98. On the upside, above 141.21 resistance will extend the up trend to 76.4% retracement of 169.96 to 94.11 at 152.59 instead.
