GBP/JPY Daily Outlook
Daily Pivots: (S1) 139.96; (P) 140.62; (R1) 141.67;
GBP/JPY's rally is still in progress and reaches as high as 141.73. Intraday bias remains on the upside for long term long term fibonacci level at 150.43. At this point, rise from 122.36 is seen as developing into medium term consolidation. Hence, we'll be cautious on topping at 150.43 on first attempt. On the upside, below 139.59 minor support will turn bias neutral and bring consolidation before staging another rally.
In the bigger picture, the down trend from 195.86 top (2015 high) should have made a medium term bottom at 122.36 after hitting 100% projection of 195.86 to 154.70 from 163.87 at 122.71. Rise from there is now expected to develop into a medium term corrective pattern. Further rise should be seen to 38.2% retracement of 195.86 to 122.36 at 150.4. We'd expect strong resistance from there to limit upside. But sustained break there will extend the rise to 61.8% retracement at 167.78.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 118.79; (P) 119.27; (R1) 120.06;
EUR/JPY rises to as high as 120.10 so far today as recent rally continues. Intraday bias stays on the upside for long term fibonacci level at 121.36. At this point, we'd expect strong resistance from there to limited upside. However, considering the break of long term trend line resistance, further upside acceleration would indicate trend reversal. On the downside, below 118.98 minor support will turn bias neutral and bring consolidation first.
In the bigger picture, a medium term bottom is in place at 109.20 and rebound from there would extend. However, momentum isn't convincing enough for trend reversal yet. Hence, in case of stronger rise, we'd be expecting strong resistance from 38.2% retracement of 141.04 to 109.20 at 121.36 to limit upside, at least on first attempt. However, sustained trading above 121.36 will pave the way to 126.09 key support turned resistance.
