Daily Currency Outlook: GPB/JPY And EUR/JPY
ActionForex | Mar 04, 2015 04:07AM ET
Daily Pivots: (S1) 183.46; (P) 184.08; (R1) 184.52;
With 181.65 minor support intact, further rally is expected in GBP/JPY for 187.79/189.70 resistance zone. We'd expect strong resistance from there to bring reversal. Meanwhile, below 181.65 minor support will suggest that rise from 175.49 has completed and will turn bias back to the downside for this support.
In the bigger picture, the up trend from 116.83 is starting to lose medium term momentum again with bearish divergence condition seen in weekly MACD. Medium term top could be around the corner, if not formed. Break of 168.01 support will confirm this bearish case and bring deeper correction. Though, as long as 168.01 holds, the up trend could still extend to 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level.
Daily Pivots: (S1) 133.50; (P) 133.97; (R1) 134.26;
Intraday bias in EUR/JPY remains neutral for the moment. Price actions from 130.13 are viewed as a consolidation pattern. Even in case of another rise, upside should be limited by 137.63 resistance to bring down trend resumption. Below 132.53 minor support will turn bias back to the downside for retesting 130.13 first. Break will extend recent down trend and target next medium term fibonacci level at 128.50.
In the bigger picture, the break of 134.13 support should confirm medium term topping at 149.76, on bearish divergence condition in weekly MACD. Deeper correction should now be seen to 38.2% retracement of 94.11 to 149.76 at 128.50 first. Based on current momentum, the correction could go deeper to 61.8% retracement at 115.36.
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