GBP/JPY Daily Outlook
Daily Pivots: (S1) 187.48; (P) 188.04; (R1) 189.00;
Intraday bias in GBP/JPY remains neutral for consolidations below 188.60 temporary top. Downside should be contained by 184.45 resistance turned support and bring rally resumption. Above 188.60 will extend the rise from 174.86 to retest 189.70 high next. Though, sustained break of 184.45 will indicate short term topping and turn bias back to the downside for 180.93 support.
In the bigger picture, the corrective structure of the pattern from 189.70 argues that long term up trend from 116.83 hasn't completed yet. This is supported by the strong support seen from 55 weeks EMA. Break of 189.70 will confirm resumption and would target 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. Nonetheless, sustained break of 174.86 will turn focus back to 168.01 key structure support instead.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 134.06; (P) 134.45; (R1) 135.00;
Intraday bias in EUR/JPY remains neutral for the moment. Near term outlook will stay mildly bullish as long as 133.48 support holds. Rebound from 126.09 is seen as a leg in the correction pattern from 149.76. Above 136.95 will target 61.8% retracement of 149.76 to 126.09 at 140.71 and above. Nonetheless, break of 133.48 will argue that such rebound is completed and will turn bias back to the downside.
In the bigger picture, price actions from 149.76 medium term top is viewed as corrective. Strong rebound after failing to sustain below 38.2% retracement of 94.11 to 149.76 at 128.50 argues that it's developing into a sideway pattern. We'd expect more range trading between 126.09 and 149.76 in medium term. And that should then be followed by an upside breakout at a later stage.
