GBP/JPY Daily Outlook
Daily Pivots: (S1) 187.68; (P) 188.13; (R1) 188.49;
Intraday bias in GBP/JPY remains neutral for the moment. Further rally is expected as long as 185.97 support holds. Above 190.00 will extend the larger up trend to 100% projection of 168.01 to 189.70 from 174.86 at 196.55. Below 185.97 will open up a few possibilities and will turn bias back to the downside for 180.93 support first.
In the bigger picture, the up trend from 116.83 should be resuming and would target 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. Medium term momentum is not too convincing with bearish divergence condition in weekly MACD. We'd be cautious on medium term topping around 200 and bring a deep correction. meanwhile, break of 174.86 will suggest that the trend has reversed earlier than we expect.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 133.16; (P) 133.49; (R1) 133.74;
EUR/JPY dips to 133.09 but quickly recovered. Intraday bias stays neutral for the moment. On the downside, below 133.03 will confirm that a short term top is formed at 136.95 and will turn bias to the downside for retesting 126.09 low. On the other hand, above 135.34 will suggest that pull back from 136.95 has completed. Intraday bias would then be flipped back to the upside for 136.95 and then 61.8% retracement of 149.76 to 126.09 at 140.71.
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. Nonetheless, decisive break of 126.09 would extend the correction towards 61.8% retracement at 115.36.
