Today's Currency Outlook

Daily Pivots: (S1) 124.26; (P) 126.12; (R1) 127.09;

GBP/JPY's decline extends further to as low as 124.64 so far today and intraday bias remains on the downside for 61.8% retracement of 116.83 to 133.48 at 123.19 next. Break of the lower channel line suggests that acceleration and sustained break of 123.47 will target a test on 116.83/117.29 support zone. On the upside, above 125.72 minor resistance will turn bias neutral and bring consolidations. But recovery should be limited by 127.10 support turned resistance and bring fall resumption.

In the bigger picture, the acceleration of the fall from 133.48 raises the chance that whole rebound from 116.83 is finished with three waves up to 133.48 already. The corrective structure in turn argue that medium term choppy decline from 163.05 is not finished yet. Sustained break of above mentioned 123.19 fibo level will likely send GBP/JPY through 116.83 to extend the long term down trend.
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EUR/JPY Daily Outlook
Daily Pivots: (S1) 100.02; (P) 101.20; (R1) 101.85;

EUR/JPY drops further to as low as 100.22 so far today. Intraday bias remains on the downside and current fall from 111.43 is expected to continue to 97.03 low next. On the upside, above 101.90 minor resistance will turn bias neutral and bring consolidations. But recovery should be limited by 104.61 support turned resistance and bring another fall.

In the bigger picture, current development suggests that EUR/JPY's down trend from 169.96 isn't completed yet and another low below 97.03 would be seen. But we're favoring the case that recent pattern from 139.21 is a falling wedge with bullish convergence condition in weekly MACD. Current fall from 111.43 should be the last leg in such pattern. And thus, the break of 97.03 support should be marginal and strong support is expected well above 88.96 to bring reversal eventually. Hence, while deeper decline could be seen, we'll look for bottoming signs as EUR/JPY breaks 97.03. Meanwhile, above 111.43 will revive the case that EUR/JPY has indeed bottomed and would turn outlook bullish.
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