Daily Currency Outlook: GPB/JPY And EUR/JPY : June 02, 2015
ActionForex | Jun 02, 2015 06:07AM ET
Daily Pivots: (S1) 188.91; (P) 189.45; (R1) 190.22;
Further rise is still expected in GBP/JPY as long as 187.78 support intact. Current rally, as part of the larger up trend, should target 100% projection of 168.01 to 189.70 from 174.86 at 196.55 next. Below 187.87 will indicate short term topping and bring consolidations first.
In the bigger picture, the up trend from 116.83 should be resuming and would target 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. Medium term momentum is not too convincing with bearish divergence condition in weekly MACD. We'd be cautious on medium term topping around 200 and bring a deep correction. Meanwhile, break of 174.86 will suggest that the trend has reversed earlier than we expect.
Daily Pivots: (S1) 135.44; (P) 136.01; (R1) 136.90;
Intraday bias in EUR/JPY remains neutral with focus on 136.95 resistance. Break will extend the rise from 126.09 to 61.8% retracement of 149.76 to 126.09 at 140.71. However, break of 133.09 will argue that such rise might be completed and will turn bias back to the downside.
In the bigger picture, price actions from 149.76 medium term top is viewed as corrective. 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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