Daily Currency Outlook: GPB/JPY And EUR/JPY

Daily Pivots: (S1) 148.73; (P) 149.58; (R1) 150.41;

GBP/JPY's break of 149.24 confirmed that recovery from 147.10 has completed at 153.01 already. Intraday bias is back on the downside for 147.10 support. Break will resume whole correction from 156.77 and should target 38.2% retracement of 118.82 to 156.77 at 142.27. On the upside, though, above 151.61 minor resistance will turn bias to the upside and bring another rise through 153.10.

In the bigger picture, a medium term top is in place at 156.77 on bearish divergence condition in daily MACD. A deeper pull back could be seen to 38.2% retracement of 118.82 to 156.77 at 142.27. Strong support would likely be seen at 140.37 to bring rebound, at least on first attempt. Overall, we'd still expect whole rise from 116.83 medium term bottom to resume later to 163.05 resistance and above after completing the correction.
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EUR/JPY Daily Outlook

Daily Pivots: (S1) 128.35; (P) 128.92; (R1) 129.85;

There was some volatility in EUR/JPY below 131.11 but over all the outlook is unchanged. We're slightly favoring the case that 124.95 is finished already and was a corrective move. That is, fall from 131.11 is possibly the third leg of the correction from 133.80. Deeper fall is expected to 126.57. Break will confirm this case and should target 124.95 and below. On the upside, above 131.11 will bring stronger rise back towards 133.80 instead.

In the bigger picture, current development argues that the medium term up trend from 94.11 has topped out at 133.80 on bearish divergence condition in daily MACD. Correction from there could extend with another fall to target 119.10 cluster support (38.2% retracement of 94.11 to 133.80 at 118.63). Strong support would be seen there, at least on initial attempt. But, break will target 61.8% retracement at 109.27. Nonetheless, considering the five wave structure of the rise from 94.11, we'd expect another medium term rally after completing the correction.
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