Daily Currency Outlook: GPB/JPY And EUR/JPY : November 21, 2016
ActionForex | Nov 21, 2016 05:29AM ET
Daily Pivots: (S1) 135.67; (P) 136.63; (R1) 137.86;
With 134.97 minor support intact, intraday bias in GBP/JPY stays on the upside for 138.81 key resistance level. As noted before, bullish convergence condition in daily MACD raises the chance of trend reversal. Decisive break there will confirm and target long term fibonacci level at 150.43. On the downside, below 134.97 minor support will turn bias neutral and bring retreat before staging another rally.
In the bigger picture, fall from 195.86 (2015 high) top has met 100% projection of 195.86 to 154.70 from 163.87 at 122.71 already. There is increasing chance of medium term bottoming at 112.36. Break of 138.81 would turn GBP/JPY into corrective phase and bring rebound to 38.2% retracement of 195.86 to 122.36 at 150.43. Meanwhile, break of 122.36 will extend the down trend to 116.83 (2011 low).
Daily Pivots: (S1) 116.95; (P) 117.22; (R1) 117.71;
Intraday bias in EUR/JPY remains on the upside as rise from 112.60 extends today. Next target will be 118.45 resistance. At this point, price actions from 109.20 are seen as a corrective pattern. We'd expect strong resistance from longer term fibonacci level at 121.36 to limit upside. On the downside, below 116.24 will indicate short term topping and turn bias back to the downside for 112.60 support.
In the bigger picture, a medium term bottom is in place at 109.20 and rebound from there would extend. However, momentum isn't convincing enough for trend reversal yet. Hence, in case of stronger rise, we'd be expecting strong resistance from 38.2% retracement of 141.04 to 109.20 at 121.36 to limit upside, at least on first attempt. Meanwhile, break of 112.06 support will likely extend the down trend from 149.76 to 76.4% retracement of 94.11 to 149.76 at 107.24.
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