Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

GPB/JPY And EUR/JPY Currency Outlook: July 22, 2014

Published 07/22/2014, 04:52 AM
Updated 03/09/2019, 08:30 AM

GBP/JPY

Daily Pivots: (S1) 172.85; (P) 173.05; (R1) 173.30;

At this point, deeper decline is still in favor in the GBP/JPY for 172.36 support. Break there will confirm near term reversal and turn outlook bearish for 170.95 support. In that case, we'll pay close attention to the reaction from 169.53 key support level. Meanwhile, above 174.54 will mix up the outlook and turn focus back to 175.36 resistance again.

In the bigger picture, the up trend from 116.83 (2011 low) continued to lose upside momentum. This could be seen in bearish divergence condition in daily MACD. And, weekly MACD continued to trend down. There is no clear sign of reversal yet but a medium term top should be near. So, in case of another rise, we'd expect strong resistance below 50% retracement retracement of 251.09 to 116.83 at 183.96 to bring reversal. Meanwhile, sustained break of 169.53 support should confirm medium term topping and turn outlook bearish.

GBP/JPY H4 Chart
GBP/JPY Daily Chart

EUR/JPY

Daily Pivots: (S1) 136.94; (P) 137.05; (R1) 137.21;

With 137.49 minor resistance intact, further fall is expected in the EUR/JPY. The cross is in the third leg of the pattern from 145.68 and should target 136.22 support next. On the upside, above 137.49 will turn bias neutral and bring consolidations before staging another decline.

In the bigger picture, loss of upside momentum was seen in bearish divergence condition in weekly MACD. However, the EUR/JPY is so far holding above 135.50 key support. Thus, there is no confirmation of trend reversal yet. Break of 145.68 will extend the up trend from 94.11 towards 76.4% retracement of 169.96 to 94.11 at 152.59 before topping. Meanwhile, break of 135.50 will confirm reversal and target 124.95 support.

EUR/JPY H4 Chart
EUR/JPY Daily Chart

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.