Daily Currency Outlook: GPB/JPY And EUR/JPY : February 09, 2016
ActionForex | Feb 09, 2016 04:18AM ET
Daily Pivots: (S1) 165.21; (P) 167.91; (R1) 169.87;
The strong break of 168.55 minor support confirmed that recovery from 163.96 is finished at 175.01 already. Intraday bias is back on the downside for 163.96. Break will confirm resumption of larger fall from 195.86 and target 61.8% projection of 188.79 to 163.96 from 175.01 at 159.66. On the upside, above 168.97 minor resistance will turn intraday bias neutral first.
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 38.2% retracement of 116.83 to 195.86 at 165.67 is already met. Based on the current momentum, the correction would likely extend to 61.8% retracement at 147.01 before completion. Nonetheless, firm break of 180.36 support turned resistance will suggest that price actions form 195.86 are merely developing into a sideway pattern.
Daily Pivots: (S1) 128.64; (P) 129.77; (R1) 130.78;
The break of 129.07 minor support indicates that rebound from 126.16 is already finished at 132.36. Intraday bias is back on the downside for 126.09 low. Decisive break there will carry larger bearish implications. On the upside, above 130.02 minor resistance will turn intraday bias neutral again.
In the bigger picture, price actions from 149.76 medium term top is viewed as developing into a corrective pattern. At this point, as long as 126.09 support holds, we'd expect a sideway pattern between 126.09 and 149.76 in medium term, to be followed by upside breakout at a later stage. However, decisive break of 126.09 will raise some question over this outlook and would at least bring deeper fall to 61.8% retracement of 94.11 to 149.76 at 115.36.
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