EUR/JPY Daily Outlook
Daily Pivots: (S1) 126.61; (P) 127.59; (R1) 128.55;
Intraday bias in EUR/JPY remains mildly on the downside. Rebound from 124.61 could have finished at 130.33 already, after rejection by 55 day EMA. Deeper fall would be seen back to 124.08/61 support zone. On the upside, break of 128.50 minor resistance is needed to indicate completion of the fall. Otherwise, deeper decline will remain in favor even in case of recovery.
In the bigger picture, despite rebounding strongly ahead of 124.08 resistance turned support, there was no clear follow through buying. Note again that there is bearish divergence in daily MACD. Firm break of 124.08 will confirm trend reversal. That is, whole rise from 109.03 (2016 low) has completed at 137.49 already. In that case, deeper fall should be seen back to 61.8% retracement of 109.03 to 137.49 at 119.90 and below. Nonetheless, decisive break of 133.47 key resistance will likely extend the rise from 109.03 through 137.49 high.
GBP/JPY Daily Outlook
Daily Pivots: (S1) 144.08; (P) 145.30; (R1) 146.21;
Intraday bias in GBP/JPY remains on the downside for 143.18 support. Firm break there will resume larger decline from 156.59 and target 139.25/47 cluster support level. On the upside, break of 146.46 minor resistance is needed to indicate completion of the fall from 148.10. Otherwise, deeper decline will now be in favor in case of recovery.
In the bigger picture, no change in the view that decline from 156.59 is 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.
