GBP/JPY Daily Outlook
Daily Pivots: (S1) 149.55; (P) 150.22; (R1) 150.70;
At this point, with 149.11 minor support intact, further rise is still mildly in favor in GBP/JPY for 152.82 resistance. Firm break there will confirm resumption of medium term rise from 122.36 and target 163.87 resistance next. On the downside, break of 149.11 minor support will turn bias to the downside and extend the correction from 152.82. In that case, we'd expect strong support from 61.8% retracement of 139.29 to 152.82 at 144.45 to bring rebound.
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) 132.15; (P) 133.32; (R1) 133.98;
Intraday bias in EUR/JPY remains neutral first. Outlook remains bullish as long as 131.65 support holds and further rise is still in favor. Sustained break of 134.39 resistance will confirm up trend resumption and target 141.04 long term resistance. However, on the downside, firm break of 131.65 will suggest trend reversal and turn focus to 127.55 key support.
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 reversed and will turn outlook bearish for deeper fall.
