Daily Currency Outlook: GPB/JPY And EUR/JPY : November 23, 2015
ActionForex | Nov 23, 2015 03:45AM ET
Daily Pivots: (S1) 185.96; (P) 187.01; (R1) 187.58;
Intraday bias in GBP/JPY remains neutral with focus back to 185.98 minor support. Break will revive the case that price actions from 180.36 are merely a corrective pattern and could have completed. In such case, deeper fall would be seen back to retest 180.36 first. However, above 188.79 might finally see GBP/JPY picking up upside momentum for a test on 195.86 high.
In the bigger picture, the breach of the medium term trend line support is taken as a sign of trend reversal. This is supported by bearish divergence condition in weekly MACD. Also, GBP/JPY was close to key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to 200 psychological level. Break of 174.86 will confirm trend reversal and bring deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67. In case of another rise, we'll be cautious on strong resistance from 199.80/200.00 to bring reversal finally.
Daily Pivots: (S1) 130.28; (P) 131.12; (R1) 131.54;
Intraday bias in EUR/JPY remains neutral for the moment but near term outlook stays bearish. Break of 130.64 will extend current decline from 141.04 for lower channel support (now at 129.74) first. Sustained break there will pave the way for a test on 126.09 low. On the upside, break of 133.18 resistance will indicate near term reversal and turn focus back to 136.38 resistance.
In the bigger picture, price actions from 149.76 medium term top is viewed as corrective in nature. 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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