Daily Currency Outlook: GPB/JPY And EUR/JPY : April 04, 2016
ActionForex | Apr 04, 2016 07:06AM ET
Daily Pivots: (S1) 157.70; (P) 159.71; (R1) 160.72;
The breach of 158.42 support suggests that rebound from 154.70 is completed at 164.09. And, fall from there is resuming. Intraday bias is mildly on the downside for retesting 154.70 first. On the upside, above 162.56 resistance would probably extend the rise from 154.70. But in that case, we'd expect strong resistance above 61.8% retracement of 175.01 to 154.70 at 167.25 to limit upside and bring down trend resumption.
In the bigger picture, a medium term top was formed at 195.86 on bearish divergence condition in weekly MACD. Fall from 195.86 is currently viewed as a correction and would likely extend to 61.8% retracement of 116.83 to 195.86 at 147.01 before completion. On the upside, break of 175.01 resistance is needed to indicate completion of fall from 195.86. Otherwise, outlook will remain bearish in case of rebound.
Daily Pivots: (S1) 126.75; (P) 127.46; (R1) 127.82;
Intraday bias in EUR/JPY remains neutral for the moment. We are maintaining our view that rebound from 122.06 is a corrective move. And, considering bearish divergence condition in 4 hours MACD too, we'd expect strong resistance from 61.8% retracement of 132.36 to 122.06 at 128.42 to limit upside. Meanwhile, below 124.66 will turn bias to the downside for 122.06 low.
In the bigger picture, medium term correction from 149.76 is still in progress and would extend to 100% projection of 149.76 to 126.09 from 141.04 at 117.37. We'll look for bottoming signal around 61.8% retracement of 94.11 to 149.76 at 115.36. Break of 132.36 resistance is needed to be the first sign of medium term reversal. Otherwise, outlook will stay bearish in case of rebound.
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