GBP/JPY Daily Outlook
Daily Pivots: (S1) 160.19; (P) 160.77; (R1) 161.42;
Breach of 158.99 minor support suggest that fall from 164.09 is resuming. Intraday bias is back on the downside for 154.70 low first. Break will extend the larger down trend. In case of another rise, we'd expect strong resistance above 61.8% retracement of 175.01 to 154.70 at 167.25 to limit upside and bring down trend resumption.
In the bigger picture, a medium term top was formed at 195.86 on bearish divergence condition in weekly MACD. Fall from 195.86 is currently viewed as a correction and would likely extend to 61.8% retracement of 116.83 to 195.86 at 147.01 before completion. On the upside, break of 175.01 resistance is needed to indicate completion of fall from 195.86. Otherwise, outlook will remain bearish in case of rebound.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 125.23; (P) 125.71; (R1) 126.16;
The break of 124.89 minor support suggests that recovery from 122.06 is finished at 127.28. Intraday bias is turned to the downside for retesting 122.06 first. Break will extend the larger down trend. Meanwhile, above 127.28 will bring another rise. But still, we'd expect strong resistance above 61.8% retracement of 132.36 to 122.06 at 128.42 to complete it and bring down trend resumption.
In the bigger picture, medium term correction from 149.76 is still in progress and would extend to 100% projection of 149.76 to 126.09 from 141.04 at 117.37. We'll look for bottoming signal around 61.8% retracement of 94.11 to 149.76 at 115.36. Break of 132.36 resistance is needed to be the first sign of medium term reversal. Otherwise, outlook will stay bearish in case of rebound.
