Daily Currency Outlook: GPB/JPY And EUR/JPY : May 26, 2016
GBP/JPY Daily Outlook
Daily Pivots: (S1) 160.75; (P) 161.63; (R1) 162.84;
With 162.80 resistance intact, outlook in GBP/JPY stays bearish. The larger down trend is expected to resume later. Below 158.03 minor support will turn bias to the downside for 151.64/153.64 support zone first. However, sustained break of 162.80 will be the first sign of trend reversal and target 164.09 resistance.
In the bigger picture, fall from 195.86 medium term is viewed as a corrective move. There is no confirmation of completion yet and GBP/JPY might still target 61.8% retracement of 116.83 to 195.86 at 147.01. We’ll start to look for reversal signal below there. However, break of 164.09 will suggests that decline is finished and open up the case for rebound to 61.8% retracement of 195.86 to 151.64 at 178.96 and above.
GBP/JPY H4 Chart
GBP/JPY Daily Chart
EUR/JPY Daily Outlook
Daily Pivots: (S1) 122.54; (P) 122.82; (R1) 123.20;
Intraday bias in EUR/JPY stays neutral as more consolidation could be seen above 121.47 low. But outlook will remain bearish as long as 126.46 resistance holds. Below 121.47 should extend the down trend from 149.76 to next projection level at 117.37.
In the bigger picture, medium term correction from 149.76 is still in progress and would extend to 100% projection of 149.76 to 126.09 from 141.04 at 117.37. We’ll look for bottoming signal around 61.8% retracement of 94.11 to 149.76 at 115.36. Break of 126.46 resistance, however, will suggest that the correction has completed earlier than we thought and turn outlook bullish.
EUR/JPY H4 Chart
EUR/JPY Daily Chart