GBP/JPY Daily Outlook
Daily Pivots: (S1) 138.78; (P) 140.07; (R1) 141.65;
Intraday bias in GBP/JPY remains neutral for consolidation below 141.73 temporary top. Downside of retreat should be contained by 38.2% retracement of 122.36 to 141.73 at 134.33 and bring another rise. As noted before, rise from 122.36 is seen as developing into medium term consolidation. Above 141.73 will target long term fibonacci level at 150.43. But we'd be cautious on topping at 150.43 on first attempt.
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) 118.82; (P) 119.39; (R1) 120.25;
EUR/JPY's rally resumes by taking out 120.15 and reaches as high as 120.73 so far. Intraday bias is back on the upside for long term fibonacci level at 121.36. As noted before, the upside acceleration and break of the medium term trend line resistance argues that rebound from 109.20 is correcting the larger down trend from 149.76. Break of 121.36 will bring further rally to 126.09 support turned resistance. Outlook will stay bullish as long as 118.54 support holds.
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.
