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GPB/JPY And EUR/JPY Daily Outlook: June 4, 2012

ByActionForex
Published 06/04/2012, 07:07 AM
Updated 03/09/2019, 08:30 AM
GBP/JPY Daily Outlook

Daily Pivots: (S1) 118.67; (P) 119.86; (R1) 120.94

Intra-day bias in GBP/JPY is neutral for the moment and some consolidations could be seen above 118.82 temporary low. But in case of recovery, upside is expected to be limited below 124.64 resistance and bring fall resumption. Below 118.82 will extend the decline from 133.48 to retest 116.83/117.29 support zone next.

In the bigger picture, the corrective structure of the rebound from 116.83 to 133.48 indicates that downtrend from 2007 high of 251.09 is not finished yet. Break of 116.83 will resume such downtrend and target 110 psychological level first. Break will pave the way to the more important 100 level and possibly below. On the upside, break of 133.48 is needed to indicate medium-term reversal. Otherwise, we'll stay bearish even in case of strong recovery.
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<span class=GBP/JPY" title="GBP/JPY" width="676" height="411">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 95.85; (P) 96.68; (R1) 97.79

Intra-day bias in EUR/JPY remains neutral for the moment and some more consolidations could be seen above 95.64 temporary low. But recovery should be limited by 100.20 resistance and bring fall resumption. Below 95.64 will target next projection level at 95.18 and then 90 psychological level.

In the bigger picture, break of 97.03 support last week confirmed resumption of the larger downtrend from 2008 high of 169.96. Current fall could target 61.8% projection of 123.31 to 97.03 from 111.43 at 95.18 and possibly further to 90 psychological level. However, as we're favoring the case that pattern from 139.21 is a falling wedge with bullish convergence condition in weekly MACD. Fall from 111.43 should be the last leg in such pattern. Hence, we'll expect strong support below 95.18 to contain downside, form a major bottom and bring reversal. So, focus will be on reversal signal below 95.18.
<span class=EUR/JPY H4" title="EUR/JPY H4" width="676" height="411">
<span class=EUR/JPY" title="EUR/JPY" width="676" height="411">

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