GBP/JPY Daily Outlook
Daily Pivots: (S1) 147.39; (P) 148.41; (R1) 149.10;
GBP/JPY is still bounded in consolidation from 146.92 temporary low. Intraday bias remains neutral first and outlook is unchanged. With 149.73 minor resistance intact, deeper decline is still expected. Below 146.92 will target 61.8% retracement of 139.29 to 152.82 at 144.45. Such decline is seen as a correction and we'd look for strong support from 144.45 to bring rebound. On the upside, break of 149.73 support turned resistance will argue that the pull back is completed and turn bias back to the upside for retesting 152.82 high. However, sustained break of 144.45 will put 139.29 key support in focus.
In the bigger picture, medium term rebound from 122.36 is still expected to resume after corrective pull back from 152.82 completes. Firm break of 38.2% retracement of 196.85 to 122.36 at 150.43 will carry long term bullish implications. In that case, GBP/JPY could target 61.8% retracement at 167.78. However, break of 139.29 will indicate rejection from 150.43 key fibonacci level. And the three wave 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) 132.69; (P) 133.15; (R1) 133.84;
At this point, EUR/JPY is still staying in range of 131.69/134.39. Intraday bias remains neutral first. With 131.69 support intact, there is no confirmation of reversal yet. Decisive break of 134.39 high will indicate up trend resumption. Next target will be 141.04 long term resistance. Nonetheless, firm break of 131.69 will be an early sign of medium term reversal and will target 127.55 key support level.
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). 61.8% retracement of 149.76 to 109.03 at 134.20 is already met. Sustained break there will pave the way to key long term resistance zone at 141.04/149.76. However, break of 127.55 support will argue that the medium term trend has reversal and will turn outlook bearish for deeper fall.
