GBP/JPY Daily Outlook
Daily Pivots: (S1) 155.23; (P) 155.93; (R1) 156.48;
With 156.65 minor resistance intact, deeper fall is still expected in the GBP/JPY. The bearish divergence condition in daily MACD argues that the trend might be reversing. Break of 154.67 will be an early sign of larger trend reversal and would bring deeper decline to 147.61 support for confirmation. On the upside, above 156.65 will turn bias to the upside for recovery first.
In the bigger picture, considering bearish divergence condition in the daily MACD, the up trend from 116.83 might be close to completion. Break of 147.61 will confirm medium term topping and bring correction back to 140.37 support and below. In case of another rise, we'd now expect strong resistance from 163.05 to limit upside.GBP/JPY Hourly Chart" title="GBP/JPY Hourly Chart" width="600" height="600" src="https://d1-invdn-com.akamaized.net/content/pic4c566080efa0553156b0f41e37c32847.png">
GBP/JPY Daily Chart" title="GBP/JPY Daily Chart" width="600" height="600" src="https://d1-invdn-com.akamaized.net/content/pic93701dda4459edcb8b014ca667d47fa9.png">
EUR/JPY Daily Outlook
Daily Pivots: (S1) 131.19; (P) 131.68; (R1) 132.12;
We're favoring the case that the rise from 127.96 has completed at 134.94 already. With 133.48 minor resistance intact, deeper decline is expected to be see back to 127.96 support first. Break will indicate larger reversal. On the upside, break of 133.48 resistance is needed to indicate bottoming. Otherwise, near term outlook will stay cautiously bearish.
In the bigger picture, upside momentum in the EUR/JPY remains rather unconvincing as seen in the daily MACD. While further rally cannot be ruled out for the moment, the cross would likely face strong resistance from 139.21 and 61.8% retracement of 169.96 to 94.11 at 140.98. The upside from 94.11 should be close to forming a medium term top and turn into consolidation. A break of 127.96 will confirm topping and should bring correction back to 119.10 support.EUR/JPY Hourly Chart" title="EUR/JPY Hourly Chart" width="600" height="600" src="https://d1-invdn-com.akamaized.net/content/pica0980a8bbff61dee13226dbf45cc4046.png">
EUR/JPY Daily Chart" title="EUR/JPY Daily Chart" width="600" height="600" src="https://d1-invdn-com.akamaized.net/content/picbd46d661b10ea28924936973fe98c6d8.png">