GBP/JPY Daily Outlook
Daily Pivots: (S1) 131.45; (P) 132.27; (R1) 132.91;
Intraday bias in GBP/JPY is turned neutral with today's recovery. Stronger recovery could be seen to 4 hours 55 EMA (now at 134.20). But recent price actions from 128.66 are seen as a consolidation pattern, possibly in form of triangle. Upside should be limited below 138.81 resistance. Eventual downside breakout is expected and below 130.83 will target 128.66 first. Decisive break there will resume larger down trend to next projection level at 122.71. Decisive break there will resume larger down trend to next projection level at 122.71
In the bigger picture, fall from 195.86 medium term top is still in progress and would target 100% projection of 195.86 to 154.70 from 163.87 at 122.71. There is prospect of retesting 116.83 (2011 low). On the upside, break of 154.70 support turned resistance is needed to be the first sign medium term bottoming. Otherwise, outlook will remain bearish in case of rebound.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 113.47; (P) 113.87; (R1) 114.28;
EUR/JPY formed a temporary low at 112.47, ahead of 112.31 support and recovered. Intraday bias stays neutral as consolidation pattern continues. At this point, we'd expect upside to be limited below 116.36. Break of 112.31/47 should pave the way for a test on 109.20 low.
In the bigger picture, there is no sign of trend reversal yet. The medium term fall from 149.76 is expected to continue and target 76.4% retracement of 94.11 to 149.76 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 rebound.
