Daily Currency Outlook: GPB/JPY Remains Neutral

Daily Pivots: (S1) 148.83; (P) 150.11; (R1) 150.97;

Intraday bias in GBP/JPY remains neutral for the moment. On the upside, above 151.92 will target 154.22 resistance first. Break will confirm that correction from 156.77 has finished at 147.10 already. In such case, stronger rise should be seen to retest 156.77. On the downside, below 148.85 will bring another fall to below 147.10 to extend the correction instead.

In the bigger picture, a medium term top is in place at 156.77 on bearish divergence condition in daily MACD. 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) 126.35; (P) 127.39; (R1) 128.23;

The breach of 127.01 minor support argues that rebound from 124.95 might be completed at 129.90. Intraday bias is mildly on the downside for 124.95 and below to extend the corrective fall from 133.80. On the upside, above 128.44 will turn bias back to the upside. Break of 129.90 should now confirm that correction from 133.80 has completed and bring stronger rise.

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. Such correction 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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