Daily Currency Outlook: No Changes In GPB/JPY, Declines For EUR/JPY
ActionForex | Aug 12, 2013 02:54AM ET
Daily Pivots: (S1) 148.63; (P) 149.63; (R1) 150.21;
No change in GBP/JPY's outlook. With 151.53 resistance intact, we're holding on to the bearish view. That is, fall from 154.04 is resuming the corrective fall from 156.77. Break of 147.10 will target 100% projection of 156.77 to 147.10 from 154.04 at 144.37. However, break of 151.53 will bring stronger rebound to extend the consolidation from 147.10 instead.
In the bigger picture, a medium term top is in place at 156.77 on bearish divergence condition in daily MACD. Deeper pull back could be seen to 38.2% retracement of 118.82 to 156.77 at 142.27. Strong support would likely be seen at 140.37 to bring rebound, at least on first attempt. Overall, we'd still expect whole rise from 116.83 medium term bottom to resume later to 163.05 resistance and above after completing the correction.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 127.88; (P) 128.79; (R1) 129.30;
Deeper decline is still expected in EUR/JPY with 129.70 minor resistance intact. Fall from 132.73 is viewed as the third leg of the consolidation from 133.80 and would target 124.95 and below. On the upside, above 129.70 will dampen the immediate bearish view and will turn focus back to 131.96 resistance instead.
In the bigger picture, current development argues that the medium term up trend from 94.11 has topped out at 133.80 on bearish divergence condition in daily MACD. Consolidation from there could extend with another fall to target 119.10 cluster support (38.2% retracement of 94.11 to 133.80 at 118.63). Strong support would be seen there, at least on initial attempt. But, break will target 61.8% retracement at 109.27. Nonetheless, considering the five wave structure of the rise from 94.11, we'd expect another medium term rally after completing the correction.
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