GBP/JPY Daily Outlook
Daily Pivots: (S1) 134.02; (P) 134.29; (R1) 134.51;
A temporary top is in place at 152.00 and intraday bias in GBP/JPY is turned neutral first. Further rally is expected as long as 150.36 holds. Above 152.00 will target 153.39 first. Break will resume medium term rally. On the downside, below 150.36 minor support will turn bias back to the downside and extend the correction from 153.39. But we'd look for strong support from 146.96 to bring rebound.
In the bigger picture, outlook is mixed up a bit with last week's sharp decline. But still, as long as 146.96 key support holds, medium term outlook remains bullish. Rise from 122.36 is in favor to extend to 61.8% retracement of 195.86 to 122.36 at 167.78. However, break of 146.96 support will indicate trend reversal. And the corrective structure of rebound from 122.36 will argue that larger down trend is resuming for a new low below 122.26.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 134.02; (P) 134.29; (R1) 134.51;
With a temporary top in place at 134.87, intraday bias in EUR/JPY is turned neutral first. Near term outlook stay bullish as long as 132.04 support holds. Above 134.87 will resume medium term rally and target 61.8% projection of 114.84 to 134.39 from 132.04 at 144.12.
In the bigger picture, medium term rise from 109.03 (2016 low) is seen as at the same degree as the down trend from 149.76 (2014 high) to 109.03 (2016 low). Sustained break of 61.8% retracement of 149.76 to 109.03 at 134.20 will pave the way to key long term resistance zone at 141.04/149.76. However, break of 132.04 support will suggest medium term topping and will turn outlook bearish for deeper fall back 55 week EMA (now at 127.82).
