GPB/JPY And EUR/JPY Currency Outlook: October 8, 2013
GBP/JPY Daily OutlookDaily Pivots: (S1) 155.32; (P) 155.74; (R1) 156.08;Intraday bias in the GBP/JPY remains on the downside and current decline should continue lower to 154.67 resistance turned support. The bearish pergence condition in the daily MACD argues that the trend might be reversing. Break of 154.67 will be an early sign of larger trend reversal and would bring deeper decline to 147.61 support for confirmation. On the upside, above 157.49 minor resistance will turn bias back to the upside for 159.98 and possibly above. But now, we’ll expect strong resistance below 163.05 to limit upside and bring 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″ src=”https://d1-invdn-com.akamaized.net/content/picfdcfe7d015c61385d221bfdc0884e584.png” />
GBP/JPY Daily Chart” title=”GBP/JPY Daily Chart” width=”600″ height=”600″ src=”https://d1-invdn-com.akamaized.net/content/pic3a994fc12b1e3192df02eea9e78272e6.png” />
EUR/JPY Daily OutlookDaily Pivots: (S1) 131.05; (P) 131.54; (R1) 131.83;The break of 131.42 minor support and near term trend line argues that rise from 127.96 has completed. Intraday bias is back on the downside and deeper fall would be seen to 127.96 support. Break will confirm larger reversal. On the upside, break of 133.48 resistance is needed to indicate bottoming. Otherwise, near term outlook will stay cautiously bearish.In the bigger picture, upside momentum in the EUR/JPY remains rather unconvincing as seen in daily 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 upside 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″ src=”https://d1-invdn-com.akamaized.net/content/picf2b98c8953173d429293b39d6eeb8032.png” />
EUR/JPY Daily Chart” title=”EUR/JPY Daily Chart” width=”600″ height=”600″ src=”https://d1-invdn-com.akamaized.net/content/pic785269e90d02d4d2dca892211f0234c1.png” />