GPB/JPY And EUR/JPY Daily Outlook: September 17, 2012

Daily Pivots: (S1) 125.72; (P) 126.48; (R1) 127.89

Intraday bias in GBP/JPY remains on the upside for the moment and current rise from 120.82 is expected to continue to 100% projection of 118.82 to 125.82 from 120.82 at 127.82 next. On the downside, break of 124.41 support is needed to signal short term topping. Otherwise, outlook will stay bullish even in case of retreat.

In the bigger picture, at this point, we'd like to maintain that price actions from 116.83 are corrective in nature so far. Rise from 118.82 could be the third leg of the pattern from 116.83 and might target 133.48 and above. But this is far from being certain. After all, the likely scenario is that we'll see more range trading between 116.83 and 140.02 (50% retracement of 163.05 to 116.83 at 139.94) ahead, before an eventual downside breakout. We'll favor this view as long as 140.02 resistance holds.
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GBP/JPY" title="GBP/JPY" width="845" height="430">
EUR/JPY Daily Outlook

Daily Pivots: (S1) 101.31; (P) 102.16; (R1) 103.75

Intraday bias in EUR/JPY remains on the upside for the moment and current rise from 94.11 should continue to 61.8% retracement of 111.43 to 94.11 at 104.81 next. On the downside, below 101.98 minor support will turn bias neutral and bring consolidations. But retreat should be contained well above 99.52 support and bring rally resumption.

In the bigger picture, current development continues to affirm the view that whole down trend form 169.96 (2008 high) has completed at 94.11. Focus is now on 111.43 key resistance level. Break will confirm this case and bring stronger rebound back to 123.31 resistance and above. We'd favor this bullish scenario as long as 99.52 support holds.
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EUR/JPY" title="EUR/JPY" width="845" height="430">