Daily Currency Outlook: GPB/JPY And EUR/JPY : January 04, 2015
ActionForex | Jan 04, 2016 04:59AM ET
Daily Pivots: (S1) 176.41; (P) 177.56; (R1) 178.17;
GBP/JPY's decline accelerates to as low as 175.99 so far and intraday bias remains on the downside for 174.86 key support level. Decisive break there will indicate larger trend reversal and target 100% projection of 195.86 to 180.36 from 188.79 at 173.9 first. On the upside, above 178.10 minor resistance will turn bias neutral and bring consolidation first. But near term outlook will stay bearish as long as 180.36 resistance turned support holds.
In the bigger picture, the medium term is possibly reversal with bearish divergence condition in weekly MACD, ahead of cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. Decisive break of 174.86 will confirm trend reversal and bring deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67 and below. In case of another rise, we'll be cautious on strong resistance from 199.80/200.00 to bring reversal finally.
Daily Pivots: (S1) 130.06; (P) 130.91; (R1) 131.37;
EUR/JPY's fall accelerates to as low as 130.02 so far today and intraday bias remains on the downside for 129.66 support level. The choppy decline from 141.04 is still in progress and the cross is held well inside falling channel. Break of 129.66 will extend the fall. And sustained break of the lower channel support will bring downside acceleration. In any case, outlook will stay bearish as long as 134.58 resistance holds.
In the bigger picture, price actions from 149.76 medium term top is viewed as corrective in nature. Strong rebound after failing to sustain below 38.2% retracement of 94.11 to 149.76 at 128.50 argues that it's developing into a sideway pattern. We'd expect more range trading between 126.09 and 149.76 in medium term. And that should then be followed by an upside breakout at a later stage. Nonetheless, decisive break of 126.09 would extend the correction towards 61.8% retracement at 115.36.
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