EUR/JPY Daily Outlook
Daily Pivots: (S1) 128.56; (P) 128.88; (R1) 129.45;
EUR/JPY breached 38.2% retracement of 124.89 to 130.86 at 128.57 but quickly recovered. Intraday bias stays neutral first. On the downside, firm break of 128.57 will argue that rebound from 124.89 has completed, and it’s the third leg of consolidation pattern from 124.61. In that case, intraday bias will be turned back to the downside for 124.61/89. On the upside, above 129.83 minor resistance will retain near term bullishness. And intraday bias will be turned back to the upside for 130.86 and above.
In the bigger picture, EUR/JPY once again rebounded ahead of 124.08 key resistance turned support. It’s also held well above long term trend line from 109.03 (2016 low). The development argues that such rise from 109.03 might not be over yet. Decisive break of 61.8% retracement of 137.49 to 124.61 at 132.56 will pave the way to retest 137.49 high. But, firm break of 124.08 will argue that whole rise from 109.03 (2016 low) has completed at 137.49. Deeper decline would be seen to 61.8% retracement of 109.03 to 137.49 at 119.90 next.
GBP/JPY Daily Outlook
Daily Pivots: (S1) 142.79; (P) 143.09; (R1) 143.59;
Intraday bias in GBP/JPY remains mildly on the downside at this point. Rebound from 139.88 should have completed at 145.67. Deeper fall would be seen to retest 139.88 low first. Break will target 139.29/47 key support zone. On the upside, above 144.20 minor resistance will turn bias back to the upside for 145.67 and possibly above.
In the bigger picture, at this point decline from 156.59 is still seen as a corrective move. Focus remains on 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47). Strong rebound from there will re-affirm the bullish case that rise from 122.36 is still to extend through 156.59 high. However, sustained break of 139.29/47 should confirm medium term reversal. GBP/JPY would then target a retest on 122.26 (2016 low).
