GBP/JPY Daily Outlook
Daily Pivots: (S1) 156.41; (P) 157.18; (R1) 157.79;
Intraday bias remains mildly on the downside for a test on 151.64/153.64 support zone. Break there will resume larger down trend. ON the upside, break of 163.87 resistance is needed to revive near term bullishness. Otherwise, near term outlook will stay neutral for the moment.
In the bigger picture, current development argues that corrective fall from 195.86 has completed at 151.64 on bullish convergence condition in daily MACD. Rebound from there is currently seen as the second leg of a medium term sideway pattern. Break of 164.09 will affirm this case and target could bring further rise to 61.8% retracement of 195.86 to 151.64 at 178.96. But we'll be cautious on strong resistance above 178.96 to bring another falling leg of the consolidation pattern.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 120.78; (P) 121.68; (R1) 122.30;
Intraday bias in EUR/JPY remains on the downside for the moment. The medium term down trend has just resumed and deeper fall should be seen to next projection level at 117.37. On the upside, break of 124.18 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
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 126.46 resistance, however, will suggest that the correction has completed earlier than we thought and turn outlook bullish.
