GBP/JPY Daily Outlook
Daily Pivots: (S1) 177.76; (P) 178.32; (R1) 179.18;
Intraday bias in GBP/JPY remains neutral for the moment. Near term outlook will stay bearish as long as 179.28 resistance holds. Below 174.86 will extend the fall fro 189.70 and target 168.10 key support level. However,decisive break of 179.28 will indicate near term reversal and will turn bias to back to the upside for 184.99 resistance instead.
In the bigger picture, the up trend from 116.83 lost much medium term momentum with bearish divergence condition seen in weekly MACD. Medium term top could be around the corner, if not formed. Break of 168.01 support will confirm this bearish case and bring deeper correction. Though, as long as 168.01 holds, the up trend could still extend to 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 127.68; (P) 128.23; (R1) 129.01;
Intraday bias in EUR/JPY stays neutral for the moment. As long as 131.28 resistance holds, deeper decline is still expected and break off 126.09 will extend the larger fall to 61.8% projection of 149.76 to 130.13 from 136.67 at 124.53 next. However, break of 131.28 will indicate near term reversal and turn focus back to 136.67 resistance instead.
In the bigger picture, the correction from 149.76 medium term top is still in progress and took out 38.2% retracement of 94.11 to 149.76 at 128.50 already. Such fall would now extend to 61.8% retracement at 115.36, which we might find strong support. In any case, outlook will stay bearish as long as 136.67 resistance holds and deeper decline is expected.