GBP/JPY Daily Outlook
Daily Pivots: (S1) 193.36; (P) 194.26; (R1) 194.75;
Intraday bias in GBP/JPY remains neutral for the moment. Rebound from 184.95 might extend. But we'd expect strong resistance from 195.86 to limit upside and bring reversal. At this point, we're holding on to the view that consolidation pattern from 195.86 isn't completed yet. Break of 190.99 will start the third leg of the consolidation and will target 184.95 support.
In the bigger picture, the up trend from 116.83 is still in progress and would target 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. Medium term momentum is not too convincing with bearish divergence condition in weekly MACD. We'd be cautious on medium term topping around 200 and bring a deep correction. Meanwhile, break of 174.86 will suggest that the trend has reversed earlier than we expect.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 137.76; (P) 138.31; (R1) 138.69;
Intraday bias in EUR/JPY remains neutral for the moment. Further rise is in favor as long as 136.78 minor support holds. Above 138.85 will target 141.04 but we'll be cautious on strong resistance from there to bring near term reversal. On the downside, below 136.78 will turn bias back to the downside for 134.99 support and below. Overall, the consolidation from 141.04 might extend further sideway. But another rise is expected as long as 133.09 support holds.
In the bigger picture, price actions from 149.76 medium term top is viewed as corrective in nature. Strong rebound after failing to sustain below 38.2% retracement of 94.11 to 149.76 at 128.50 argues that it's developing into a sideway pattern. We'd expect more range trading between 126.09 and 149.76 in medium term. And that should then be followed by an upside breakout at a later stage. Nonetheless, decisive break of 126.09 would extend the correction towards 61.8% retracement at 115.36.
