Daily Currency Outlook:GBP/JPY, EUR/JPY Remaining Neutral - May 17, 2013

Daily Pivots: (S1) 155.47; (P) 155.98; (R1) 156.61;

Intraday bias in the GBP/JPY remains neutral for the moment; some consolidations can be seen below the 156.77 temporary top. A further rise is still expected as long as the 153.26 minor support holds. The current rally is still in progress. It should target a 100% projection of 125.67 to 147.97 from 140.37 at 162.67, which is close to 163.05 key resistance. On the downside, though, a break of 153.26 will indicate short term topping and bring deeper pull back.

The medium term rise from 116.83 is still in progress. Whether this type of rally is impulsive or corrective in nature, it's at least a move at the same degree as a fall from 163.05. We expect the current rise to extend to 163.05 resistance and above. We'll stay bullish as long as 146.42 support holds.
GBP/JPY H4" title="GBP/JPY H4" width="600" height="600">

GBP/JPY" title="GBP/JPY" width="600" height="600">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 131.27; (P) 131.73; (R1) 132.18;

Intraday bias in EUR/JPY remains neutral; more consolidations would be seen below the 132.76 temporary top. The downside retreat should be contained above 127.05 support, and bring another rise. Above 132.76 will extend the larger uptrend to 61.8% projection of 100.32 to 127.70 from 119.10 at 136.02 next.

The whole down trend from 169.96 (2008 high) has already completed at 94.11, on bullish convergence condition in the weekly MACD. The rise from there has met the mentioned 50% retracement of 169.96 to 94.11 at 132.03 alread,y and there is no clear sign of reversal so far. Such a rally should now extend through 139.21 resistance to 61.8% retracement at 140.98. A break of 124.84 support is needed to be the first sign of medium term topping. Outlook will stay bullish.
EUR/JPY H4" title="EUR/JPY H4" width="600" height="600">

EUR/JPY" title="EUR/JPY" width="600" height="600">