GBP/JPY Daily Outlook
Daily Pivots: (S1) 154.60; (P) 156.39; (R1) 159.52;
GBP/JPY's fall down trend resumed by diving sharply and reaches as low as 133.23 so far. Intraday bias is now on the downside and the current down trend from 195.86 would extend to next projection level at 122.71. On the upside, above 145.38 resistance will turn bias neutral and bring consolidations first, before staging another fall.
In the bigger picture, fall from 195.86 medium term top is still in progress and met 61.8% projection of 195.86 to 154.70 from 163.87 at 138.43 already. There is no indication of bottoming yet. Current acceleration suggests that deeper decline would be seen to 100% projection at 122.71, with projection of retesting 116.83 (2011 low). ON the upside, break of 154.70 support turned resistance is needed to indicate medium term bottoming. Otherwise, outlook will remain bearish in case of recovery.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 118.87; (P) 119.88; (R1) 121.86;
EUR/JPY drops sharply to as low as 109.20 and took out medium term fibonacci level of 115.36 firmly. Intraday bias is now on the downside for next level at 107.24. Sustained break there could now bring a test on 94.11 low. On the upside, above 115.49 minor resistance will turn bias neutral and bring consolidations first.
In the bigger picture, medium term down trend form 149.76 is still in progress. 61.8% retracement of 94.11 to 149.76 at 115.36 was taken out but there is not sign of bottoming yet. Further downside acceleration would send the cross to 76.4% retracement at 107.24. Sustained break there will bring retest of 94.11 low. In any case, break of 121.93 resistance is needed to be the first signal of reversal. Otherwise, outlook will stay bearish in case of recovery.