GPB/JPY And EUR/JPY Currency Outlook: October 30, 2013
GBP/JPY Daily OutlookDaily Pivots: (S1) 156.96; (P) 157.32; (R1) 157.90; There was no follow through selling in the GBP/JPY and intraday bias is turned neutral again. Outlook is unchanged before breakout from 154.72/159.52 range. Near term upside momentum remains very unconvincing. Hence, while above 159.52 will extend recent rally, we’d expect strong resistance below 163.05 resistance to bring larger reversal eventually. Decisive break of 154.72 will be an early sign of reversal and would turn near term outlook bearish for 147.61 support.In the bigger picture, considering bearish pergence condition in 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) 134.42; (P) 134.79; (R1) 135.32;The EUR/JPY is staying in range below 135.50 and intraday bias remains neutral. The cross could be in the final stage of a diagonal triangle from 124.95. Hence, while above 135.50 will extend recent rally, we’d expect strong resistance below 139.21 resistance to bring larger reversal eventually. On the downside, below 133.60 will turn bias to the downside for 131.13 support. Decisive break there will be an early sign of reversal and turn near term outlook bearish for 124.95 support and below.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 127.96 will confirm topping and should bring correction back to 119.10 support.
EUR/JPY Hourly Chart” title=”EUR/JPY Hourly Chart” width=”600″ height=”600″ />
EUR/JPY Daily Chart” title=”EUR/JPY Daily Chart” width=”600″ height=”600″ />