GBP/JPY Daily Outlook
Daily Pivots: (S1) 176.72; (P) 177.54; (R1) 178.94;
GBP/JPY rises to as high as 180.70 so far today and intraday bias remains on the upside. The medium term up trend is still in progress and should target next long term fibonacci level at 183.96. On the downside, below 178.47 minor support will turn bias neutral and bring retreat. But downside should be contained above 175.36 resistance turned support and bring rally resumption.
In the bigger picture, the strong break of 175.36 confirmed larger up trend from 116.83 low has resumed. Current rise would now extend to 50% retracement retracement of 251.09 to 116.83 at 183.96. Current acceleration suggests that such fibonacci level would be taken out and GBP/JPY would target 61.8% retracement at 199.80. Meanwhile, outlook will stay bullish as long as 169.34 support holds, in case of deeper pull back.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 139.54; (P) 140.03; (R1) 140.92;
EUR/JPY reaches as high as 141.21 so far today as recent rally continues. Intraday bias remains on the upside. As noted before, Consolidation pattern from 145.68 has completed with three waves down to 135.72 just ahead of 135.50 key support. Retest of 143.78/145.68 resistance zone should be seen next. On the downside, below 140.24 minor support will turn bias neutral and bring consolidations before staging another rise.
In the bigger picture, there is no clear sign of trend reversal in EUR/JPY in spite of the loss of upside momentum as seen in bearish divergence condition in weekly MACD. The cross held on to 135.50 key support level, as well as the 55 weeks EMA. Hence, the up trend from 94.11 long term bottom is still in favor to continue. Break of 145.68 will target 76.4% retracement of 169.96 to 94.11 at 152.59. Though, break of 135.50 will confirm reversal and target 124.95 support.
