Daily Currency Outlook: GPB/JPY And EUR/JPY : August 24, 2016
ActionForex | Aug 24, 2016 08:17AM ET
Daily Pivots: (S1) 131.71; (P) 132.01; (R1) 132.58;
Breach of 132.52 minor resistance suggests that choppy fall from 143.21 has completed at 129.14, ahead of 128.66. Rebound from 129.14 might extend higher as the third leg of the consolidation pattern from 128.66 and target 143.21. Though, break of 128.66 will resume larger down trend from 195.86 and target next projection level at 122.71.
In the bigger picture, fall from 195.86 medium term top is still in progress and would target 100% projection of 195.86 to 154.70 from 163.87 at 122.71. There is prospect of retesting 116.83 (2011 low). On the upside, break of 154.70 support turned resistance is needed to be the first sign medium term bottoming. Otherwise, outlook will remain bearish in case of rebound.
Daily Pivots: (S1) 113.13; (P) 113.42; (R1) 113.63;
Intraday bias in EUR/JPY remains neutral for the moment. Outlook remains bearish and further decline is expected. As noted before, rebound from 109.20 should have completed at 118.45 already. Below 112.31 will target 109.20/110.81 support zone. Break will extend the larger fall to next long term fibonacci level at 107.24. However, above 114.80 minor resistance will argue that the consolidation pattern from 109.20 is extending with another rise and turns bias back to the upside.
In the bigger picture, medium term down trend from 149.76 is still in progress and would target 76.4% retracement of 94.11 to 149.76 at 107.24. Sustained break there will bring retest of 94.11 low. In any case, break of 121.93 resistance is needed to be the first signal of reversal. Otherwise, outlook will stay bearish in case of rebound.
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.