GBP/JPY Daily Outlook
Daily Pivots: (S1) 157.70; (P) 159.71; (R1) 160.72;
Intraday bias in GBP/JPY remains o the downside for the moment. Corrective rebound from 154.70 should have completed at 164.09 already. Deeper should now be seen back to retest 154.70 first. Break will resume larger down trend from 195.86. On the upside, above 162.56 resistance would probably extend the rise from 154.70. But in that case, 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) 126.37; (P) 126.86; (R1) 127.27;
We are maintaining our view that rebound from 122.06 is a corrective move. Another rise cannot be ruled out yet. But, considering bearish divergence condition in 4 hours MACD too, we'd expect strong resistance from 61.8% retracement of 132.36 to 122.06 at 128.42 to limit upside. Meanwhile, below 124.66 will turn bias to the downside for 122.06 low.
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.
