GBP/JPY Daily Outlook
Daily Pivots: (S1) 151.30; (P) 151.61; (R1) 151.95
With 150.36 minor support intact, intraday bias in GBP/JPY remains mildly on the upside for 153.39. Break will resume medium term rally. On the downside, below 150.36 minor support will turn bias back to the downside and extend the correction from 153.39. But we'd look for strong support from 146.96 to bring rebound.
In the bigger picture, outlook is mixed up a bit with last week's sharp decline. But still, as long as 146.96 key support holds, medium term outlook remains bullish. Rise from 122.36 is in favor to extend to 61.8% retracement of 195.86 to 122.36 at 167.78. However, break of 146.96 support will indicate trend reversal. And the corrective structure of rebound from 122.36 will argue that larger down trend is resuming for a new low below 122.26.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 134.36; (P) 134.62; (R1) 134.79;
With 133.91 minor support intact, intraday bias in EUR/JPY remains mildly on the upside for further rally. Current rise from 132.04 should target 61.8% projection of 114.84 to 134.39 from 132.04 at 144.12. Ideally, upside acceleration should be seen in the current move with daily MACD taking out down trend line. On the downside, below 133.91 minor support will turn intraday bias neutral first. But outlook will stay bullish as long as 132.04 key support holds.
In the bigger picture, medium term rise from 109.03 (2016 low) is seen as at the same degree as the down trend from 149.76 (2014 high) to 109.03 (2016 low). Sustained break of 61.8% retracement of 149.76 to 109.03 at 134.20 will pave the way to key long term resistance zone at 141.04/149.76. However, break of 132.04 support will suggest medium term topping and will turn outlook bearish for deeper fall back 55 week EMA (now at 127.82).
