EUR/JPY Daily Outlook
Daily Pivots: (S1) 128.32; (P) 128.88; (R1) 129.54;
Prior break of 128.32 suggests that decline from 133.12 is resuming. Further fall is expected as long as 130.20 resistance holds. Break of 127.85 support should confirm completion of rebound from 124.89 at 133.12 and bring retest of this low.
In the bigger picture, as long as 124.08 key resistance turn supported holds, larger up trend from 109.03 (2016 low) is still in progress. Firm break of 137.49 structural resistance will target 141.04/149.76 resistance zone next. However, decisive break of 124.08 will argue that such rise from 109.03 has completed and turn outlook bearish.
GBP/JPY Daily Outlook
Daily Pivots: (S1) 145.39; (P) 145.90; (R1) 146.50;
As noted before, GBP/JPY’s break of 145.67 resistance turned support suggests that whole rise from 139.88 has completed at 149.70 already. Intraday bias is staying on the downside for 142.59 support first. Break will target 139.88 low next. On the upside, break of 147.57 resistance is needed to indicate completion of fall from 149.70. Otherwise, near term outlook will now stay mildly bearish even in case of recovery.
In the bigger picture, as long as 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47) holds, up trend from 122.36 (2016 low) would still extend beyond 156.69 high. However, decisive break of 139.29/47 will suggest that such up trend is completed and turn outlook bearish.
