Daily Currency Outlook: GPB/JPY And EUR/JPY
ActionForex | Jul 31, 2013 03:43AM ET
Daily Pivots: (S1) 148.72; (P) 149.82; (R1) 150.45;
GBP/JPY's fall from 154.04 continues today and intraday bias remains on the downside for 148.77 support. Such decline is viewed as the third leg of the correction pattern from 156.77. Break of 148.77 will confirm this bearish case and target 147.10 and below. On the upside, above 150.92 minor resistance will turn bias neutral first.
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) 129.67; (P) 130.09; (R1) 130.43;
Deeper decline is still expected in EUR/JPY with 130.93 minor resistance intact. 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 focus back to 132.73 resistance instead.
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.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.