GPB/JPY And EUR/JPY Currency Outlook: January 3, 2014

GBP/JPY Daily Outlook

Daily Pivots: (S1) 171.18; (P) 173.01; (R1) 174.19;

The sharp decline suggests that a short term top is formed at 174.84 on bearish divergence condition in the 4 hours MACD. Intraday bias is mildly on the downside and deeper pull back could be seen to 170.05 resistance turned support and below. Though, outlook will stay bullish as long as 166.57 support holds and another rally is still expected. Break of 174.84 will extend the larger up trend to 161.8% projection of 147.61 to 159.98 from 156.63 at 176.64 next.

In the bigger picture, the up trend from 116.83 is still in progress and there is no sign of reversal yet. Break of 166.57 support is needed to be the first signal of medium term topping. Otherwise, outlook will stay bullish. The up trend from 116.83 should target 50% retracement retracement of 251.09 to 116.83 at 183.96 and above.
GBP/JPY Hourly Chart" title="GBP/JPY Hourly Chart" width="452" height="600">
GBP/JPY Daily Chart" title="GBP/JPY Daily Chart" width="452" height="600">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 142.36; (P) 143.73; (R1) 144.64;

The sharp decline in thebEUR/JPY indicates that a short term top is in place at 145.68 on bearish divergence condition in 4 hours MACD. Intraday bias is mildly on the downside for deeper pull back. But outlook will stay bullish as long as 140.99 support holds. Recent rally is expected to extend towards long term fibonacci level at 152.59. however, break of 140.99 will bring deeper decline back towards 55 days EMA (now at 138.69).

In the bigger picture, medium term up trend from 94.11 is still in progress and EUR/JPY seems to be regaining upside momentum again. Sustained break of 61.8% retracement of 169.96 to 94.11 at 140.98 should now pave the way to 76.4% retracement at 152.59. Break of 135.50 resistance turned support is needed to be the first sign of medium term topping. Otherwise, outlook will stay bullish.
EUR/JPY Hourly Chart" title="EUR/JPY Hourly Chart" width="452" height="600">
EUR/JPY Daily Chart" title="EUR/JPY Daily Chart" width="452" height="600">