Daily Currency Outlook: EUR/JPY And GBP/JPY : August 17,2018
ActionForex | Aug 17, 2018 07:25AM ET
Daily Pivots: (S1) 125.46; (P) 125.98; (R1) 126.67;
Intraday bias in EUR/JPY remains neutral for the moment. With 126.98 minor resistance intact, deeper fall could still be seen. But considering loss of downside momentum, downside will likely be contained by 124.08/61 key support zone to bring rebound. On the upside, break of 126.98 will indicate short term bottoming and turn bias back to upside for stronger rebound.
In the bigger picture, focus is back on 124.08 key resistance turned support. Decisive break there will argue that whole rise from 109.03 (2016 low) has completed at 137.49. Deeper decline would be seen to 61.8% retracement of 109.03 to 137.49 at 119.90 next. Sustained break there will pave the way to 109.03 and below. Meanwhile, rebound from 124.08 will keep medium term bullishness intact for another high above 137.49.
h2 GBP/JPY Daily Outlook/h2
Daily Pivots: (S1) 140.34; (P) 140.83; (R1) 141.46;
Intraday bias remains neutral for consolidation above 139.88 temporary low. Deeper fall could be seen. But considering loss of downside momentum, downside will be contained by 139.29/47 key support level to bring rebound. On the upside, break of 142.46 will indicate short term bottoming and turn bias back to the upside for stronger rebound.
In the bigger picture, at this point decline from 156.59 is still seen as a corrective move. But the current downside accelerate makes this view shaky. Focus will be on 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47). Strong rebound from there will re-affirm the bullish case that rise from 122.36 is still to extend through 156.59 high. However, sustained break of 139.29/47 should confirm medium term reversal. GBP/JPY would then target a retest on 122.26 (2016 low).
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