Daily Currency Outlook: GPB/JPY And EUR/JPY : September 26, 2016
ActionForex | Sep 26, 2016 07:25AM ET
Daily Pivots: (S1) 130.12; (P) 131.19; (R1) 131.95;
GBP/JPY's fall resumed day with intraday bias back to the downside. We maintained the view that price actions from 128.66 are seen as a consolidation pattern. Decisive break of 129.14 should resume the larger down trend to next projection level at 122.71. On the upside, above 132.28 minor resistance will extend such consolidation with another rise. But upside should be limited below 138.81 and bring eventual downside breakout.
In the bigger picture, fall from 195.86 medium term top is still in progress and would target 100% projection of 195.86 to 154.70 from 163.87 at 122.71. There is prospect of retesting 116.83 (2011 low). On the upside, break of 143.21 resistance is needed to be the first sign medium term bottoming. Otherwise, outlook will remain bearish in case of rebound.
Daily Pivots: (S1) 112.96; (P) 113.28; (R1) 113.70;
Intraday bias in EUR/JPY remains neutral for the moment. Price actions from 109.20 are viewed as a consolidation pattern. Below 112.07 will target a test on 109.20 low. And this will be the preferred bearish view as long as 116.36 resistance holds.
In the bigger picture, there is no sign of trend reversal yet. The medium term fall from 149.76 is expected to continue and target 76.4% retracement of 94.11 to 149.76 at 107.24. Sustained break there will bring retest of 94.11 low. In any case, break of 118.45 resistance is needed to be the first signal of reversal. Otherwise, outlook will stay bearish in case of rebound.
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