GPB/JPY And EUR/JPY Currency Outlook: October 24, 2013
GBP/JPY Daily OutlookDaily Pivots: (S1) 156.38; (P) 157.86; (R1) 158.88;Intraday bias in the GBP/JPY remains mildly on the downside as fall from 159.52 temporary top is in progress for 154.72 support. Decisive break there will be an early sign of reversal and would turn near term outlook bearish. In case of another rally, we’d still expect strong resistance below 163.05 resistance to bring larger reversal eventually.In the bigger picture, considering bearish pergence 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″ />
GBP/JPY Daily Chart” title=”GBP/JPY Daily Chart” width=”600″ height=”600″ />
EUR/JPY Daily OutlookDaily Pivots: (S1) 133.40; (P) 134.34; (R1) 135.07;Intraday bias in the EUR/JPY is mildly on the downside for the moment and fall from 133.82 temporary top would extend lower. Note that even in case of another rally, we’d expect strong resistance below 139.21 to limit upside and finally bring larger reversal. Break of 131.13 will be an early sign of reversal and turn near term outlook bearish.In the bigger picture, upside momentum in EUR/JPY remains rather unconvincing as seen in daily and weekly 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 up trend from 94.11 should be close to forming a medium term top and turn into consolidation. Break of 131.13 will confirm topping and should bring correction back to 119.10 support.
EUR/JPY Daily Chart” title=”EUR/JPY Daily Chart” width=”600″ height=”600″ />
EUR/JPY Hourly Chart” title=”EUR/JPY Hourly Chart” width=”600″ height=”600″ />