Daily Currency Outlook: GPB/JPY And EUR/JPY
ActionForex | Jul 29, 2013 05:27AM ET
Daily Pivots: (S1) 150.29; (P) 151.59; (R1) 152.48;
GBP/JPY dips to 150.33 so far today and intraday bias remains on the downside. As noted before, recovery from 147.10 has completed at 154.04 already. Fall from there should be the third leg of the correction pattern from 154.04. Deeper fall should be seen to 148.77 support first. Break will confirm this bearish case and target 147.10 and below. On the upside, above 151.65 minor resistance will turn bias neutral first. But risk will remain on the downside as long as 154.04 resistance holds.
In the bigger picture, a medium term top is in place at 156.77 on bearish divergence condition in daily MACD. Deeper pull back could be seen to 38.2% retracement of 118.82 to 156.77 at 142.27. Strong support would likely be seen at 140.37 to bring rebound, at least on first attempt. Overall, we'd still expect whole rise from 116.83 medium term bottom to resume later to 163.05 resistance and above after completing the correction.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 129.72; (P) 130.85; (R1) 131.62;
EUR/JPY dips to 129.76 so far today and intraday bias remains on the downside. As noted before, rebound from 124.95 has completed at 132.73 already. Fall from 132.73 is viewed as the third leg of the consolidation from 133.80. Deeper decline should be seen to 128.01 support first. Break will confirm this bearish case and target 124.95 and below. On the upside, above 130.93 minor resistance will turn bias neutral. But risk will stay on the downside as long as 132.73 resistance holds.
In the bigger picture, current development argues that the medium term up trend from 94.11 has topped out at 133.80 on bearish divergence condition in daily MACD. Correction from there could extend with another fall to target 119.10 cluster support (38.2% retracement of 94.11 to 133.80 at 118.63). Strong support would be seen there, at least on initial attempt. But, break will target 61.8% retracement at 109.27. Nonetheless, considering the five wave structure of the rise from 94.11, we'd expect another medium term rally after completing the correction.
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