Daily Currency Outlook: GPB/JPY And EUR/JPY : July 27, 2016
ActionForex | Jul 27, 2016 06:16AM ET
Daily Pivots: (S1) 135.82; (P) 137.47; (R1) 138.98;
Intraday bias in GBP/JPY remains neutral for the moment. The rebound from 128.86 is seen as a correction. Below 135.96 minor support will suggest that such recovery is finished and turn bias back to the downside for 128.86 low. Break will extend the larger fall from 195.86 to 122.71 projection level.
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 recovery.
Daily Pivots: (S1) 114.11; (P) 115.26; (R1) 116.06;
Intraday bias in EUR/JPY is turned neutral first as it failed to sustain below 114.79 support and recovered. On the downside, break of 114.44 will affirm the case that corrective rise from 109.20 has completed at 118.45 already. Retest of 109.20 should then be seen and break will target next long term fibonacci level at 107.24. On the upside, above 118.45 will extend the rebound. But upside should be limited below 121.93 resistance to bring near term reversal.
In the bigger picture, medium term down trend form 149.76 is still in progress. Further downside acceleration would send the cross to 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 recovery.
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