EUR/JPY Daily Outlook
Daily Pivots: (S1) 129.48; (P) 129.78; (R1) 130.30;
EUR/JPY’s strong rebound from1 29.10 and break of 130.25 minor resistance suggests that pull back from 131.97 is completed. Also, with 127.13 support intact, rise from 124.61 is possibly still in progress. Intraday bias is back on the upside for 131.97 first. Break will extend the rebound from 124.61 to 133.47 key resistance. On the downside, though, below 129.10 will extend the fall from 131.97 to 127.13 support next.
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) 145.52; (P) 145.73; (R1) 146.08;
Intraday bias in GBP/JPY is turned neutral with the current recovery. Focus is back on 146.51 minor resistance. Break there will argue that pull back from 149.30 has completed. And, intraday bias will be turned back to the upside for this resistance. ON the downside, below 145.25 will target 143.18/76 support zone.
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.
