EUR/JPY Daily Outlook
Daily Pivots: (S1) 129.83; (P) 129.63; (R1) 130.02;
Intraday bias in EUR/JPY remain neutral at hit point. On the downside, below 129.10 will resume the decline from 131.97 and target 127.13 support. Break there will confirm completion of rebound from 124.61, with three waves up to 131.97. On the upside, above 131.13 will likely resume the rebound from 124.61 through 131.97.
In the bigger picture, for now, medium outlook remains cautiously bullish. the three wave structure of the fall from 137.49 to 124.61 argues that it’s a correction. Also, 124.08 key resistance turned support was defended. Break of 133.47 resistance will affirm the bullish case that rise from 109.03 (2016 low) is still in progress for another high above 137.49. And this will remain the favored case as long as 127.13 support holds.
GBP/JPY Daily Outlook
Daily Pivots: (S1) 144.67; (P) 145.68; (R1) 146.35;
Intraday bias in GBP/JPY remains on the downside as fall from 149.30 is in progress. As noted before, consolidation pattern from 143.18 has completed with three waves up to 149.30 already. Deeper fall would be seen to 143.18 support first. Break will extend larger fall from 156.69 to key support level at 139.29/47. This will be the preferred case as long as 147.13 minor resistance holds.
In the bigger picture, decline from 156.59 is seen as a corrective move. In case of another fall, strong support should be seen above 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47) to contain downside and bring rebound. Meanwhile, break of 153.84 should confirm that the correction is completed and target 156.59 and above to resume the medium term up trend.
