Daily Currency Outlook: GPB/JPY and EUR/JPY

Daily Pivots: (S1) 130.42; (P) 130.94; (R1) 131.77;

GBP/JPY rose to as high as 131.71 so far and met mentioned target of 61.8% retracement of 140.02 to 116.83 at 131.16. Intraday bias remains on the upside for the moment. Sustained trading above 113.16 will pave the way to retest 140.02 key resistance next. On the downside, below 130.11 minor support will turn bias neutral and bring consolidations. But retreat should be contained above 126.54 and bring another rally.

In the bigger picture, recent development argues that choppy decline from 163.05 is completed at 116.83 already. Focus remains on 140.02 and sustained break there will confirm this bullish case. More importantly, this will also signal completion of the whole down trend from 2007 high of 251.09. In such case, stronger rise should be seen back to retest on 163.05 resistance next.
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EUR/JPY Daily Outlook

Daily Pivots: (S1) 108.54; (P) 108.96; (R1) 109.54;

Intraday bias in EUR/JPY remains mildly on the upside with 107.51 minor support intact. Break of 109.83 will confirm resumption of recent rise and should target 111.57 key resistance. Note that break of 111.57 will affirm the case that fall from 123.31 has finished on bullish convergence condition in daily MACD. On the downside, though, below 107.51 will bring another fall to 105.64 and below to extend the consolidation from 109.83.

In the bigger picture, the case of trend reversal in EUR/JPY is starting to build up and 97.03 should be a medium term bottom. Break of 111.57 will affirm this case and should at least push EUR/JPY for a test on 123.31 resistance. Break there will argue that whole down trend from 2008 high of 169.96 is completed and reversed. Though, failure to take out 123.31 and reversal from there will likely bring some sideway trading between 97.03/123.31 in medium term.
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EUR/JPY" title="EUR/JPY" width="600" height="600">