GBP/JPY Daily Outlook
Daily Pivots: (S1) 164.52; (P) 165.26; (R1) 166.66;
The GBP/JPY formed a temporary low at 163.87 and intraday bias is turned neutral for some sideway trading first. Near term outlook stays bearish with 167.76 support turned resistance intact. Below 163.87 will extend the fall from 174.84 to medium term trend line support at around 161.80. Sustained break there will have larger bearish implication and will bring a test on key support level at 159.98.
In the bigger picture, the sharp fall from 174.84, with weekly MACD dragged below signal line, is starting to raise the odds of medium term topping. Focus is on trend line support (125.67, 147.61, now at around 161.80). Sustained trading below there would confirm medium term topping and bring deeper decline to correct the whole up trend from 116.83 (2011 low). On the upside, break of 17484 will target 50% retracement retracement of 251.09 to 116.83 at 183.96 and above
GBP/JPY Hourly Chart" title="GBP/JPY Hourly Chart" width="474" height="242">
GBP/JPY Daily Chart" title="GBP/JPY Daily Chart" width="474" height="242">
EUR/JPY Daily Outlook
Daily Pivots: (S1) 136.59; (P) 137.01; (R1) 137.80;
A temporary low is formed at 136.22 in the EUR/JPY and intraday bias is turned neutral first. Some consolidations could be seen but recovery should be limited below 140.49 resistance and bring another fall. Below 136.22 will target 135.50 key support level. Decisive break there will argue that 145.68 is indeed a medium term top and deeper correction would be seen to 131.21 support next.
In the bigger picture, the acceleration of the fall from 145.68 raised the odds of medium term topping there. It should be noted that weekly MACD crossed below signal line and display bearish divergence condition. Focus will now be on 135.50 key support level. Break there will confirm medium term topping. In such case, deeper decline would be seen back to 124.95 support, which is close to 38.2% retracement of 94.11 to 145.68 at 125.98, to correct the whole up trend from 94.11. Meanwhile, break of 145.68 will extend such up trend to 76.4% retracement of 169.96 to 94.11 at 152.59 and above.
EUR/JPY Hourly Chart" title="EUR/JPY Hourly Chart" width="474" height="242">
EUR/JPY Daily Chart" title="EUR/JPY Daily Chart" width="474" height="242">