GBP/JPY Daily Outlook
Daily Pivots: (S1) 145.42; (P) 145.91; (R1) 146.35;
The breach of 146.42 minor resistance argues that pull back from 147.76 has completed at 144.01, after being supported by 55 day EMA. Intraday bias is now mildly on the upside for 147.76/148.42 key resistance zone. Break there will resume larger rebound from 122.36. ON the downside, break of 144.01 will extend the sideway pattern from 148.20 with another fall back to 135.58/65 support zone.
In the bigger picture, rise from medium term bottom at 122.36 is expected to continue to 38.2% retracement of 196.85 to 122.36 at 150.43. Decisive break there will carry long term bullish implications and pave the way to 61.8% retracement at 167.78. In case the sideway pattern from 148.42 extends, we'd be looking for strong support from 135.58 and 50% retracement of 122.36 to 148.42 at 135.39 to contain downside.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 129.51; (P) 130.04; (R1) 130.84;
Intraday bias in EUR/JPY remains neutral as consolidation from 130.76 is still in progress. In case of another fall, downside should be contained by 127.43 cluster support (38.2% retracement of 122.39 to 130.76 at 127.56) and bring rebound. Above 130.76 will extend the larger rally to next key fibonacci level at 134.20.
In the bigger picture, the down trend from 149.76 (2014 high) is completed at 109.03 (2016 low). Current rally from 109.03 should be at the same degree as the fall from 149.76 to 109.03. Further rise is expected to 61.8% retracement of 149.76 to 109.03 at 134.20. Sustained break there will pave the way to key long term resistance zone at 141.04/149.76. Medium term outlook will remain bullish as long as 124.08 resistance turned support holds.
