Daily Currency Outlook: GPB/JPY And EUR/JPY : May 03, 2016
ActionForex | May 03, 2016 06:23AM ET
Daily Pivots: (S1) 155.10; (P) 155.88; (R1) 156.90;
Intraday bias in GBP/JPY remains on the downside for 151.64 low. The larger decline from 195.86 could be resuming and break of 151.64 will target next long term fibonacci level at 147.01. On the upside, above 158.48 will turn bias neutral first. Overall, outlook will stays bearish as long as 164.09 resistance holds and downside breakout is still expected.
In the bigger picture, fall from 195.86 medium term is viewed as a corrective move. There is no confirmation of completion yet and GBP/JPY might still target 61.8% retracement of 116.83 to 195.86 at 147.01. We'll start to look for reversal signal below there. However, break of 164.09 will suggests that decline is finished and open up the case for rebound to 61.8% retracement of 195.86 to 151.64 at 178.96 and above.
Daily Pivots: (S1) 122.01; (P) 122.45; (R1) 123.19;
A temporary low is in place at 121.67 and intraday bias is turned neutral first. Recovery should be limited well below 126.46 resistance and bring fall resumption. Break of 121.67 will extend the whole down trend from 149.76 and target next projection level at 117.37.
In the bigger picture, medium term correction from 149.76 is still in progress and would extend to 100% projection of 149.76 to 126.09 from 141.04 at 117.37. We'll look for bottoming signal around 61.8% retracement of 94.11 to 149.76 at 115.36. Break of 126.46 resistance, however, will suggest that the correct has completed earlier than we thought and turn outlook bullish.
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