GPB/JPY And EUR/JPY Currency Outlook: February 27, 2014
ActionForex | Feb 27, 2014 02:24AM ET
GBP/JPY Daily Outlook
Daily Pivots: (S1) 170.09; (P) 170.51; (R1) 171.09
Intraday bias in the GBP/JPY remains neutral for the moment. Another rally remains mildly in favor as long as 169.11 holds. And, above 171.88 will target 173.65/174.84 resistance zone. However, considering that the cross is limited by near term falling trend line, break of 169.11 will argue that rebound from 163.87 has finished. In such case, intraday bias will be turned back to the downside for retesting 163.87 instead and the correction from 174.84 might extend.
In the bigger picture, the up trend from 116.83 (2011 low) might still extend to above 174.84. Nonetheless, upside momentum is rather unconvincing as seen in weekly MACD. Thus, even in that case, we'd expect strong resistance from 50% retracement retracement of 251.09 to 116.83 at 183.96 to limit upside. Meanwhile, sustained break 163.87 support should confirm medium term topping at 174.84 and bring deeper decline to 147.61/156.77 support zone next.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 139.57; (P) 140.18; (R1) 140.70
Intraday bias in the EUR/JPY is neutral for the moment. With 139.21 minor support intact, the rebound from 136.22 is expected to extend to 142.41 resistance. Break will target retest on 145.68 high. Meanwhile, below 139.21 minor support will flip bias back to the downside for 136.22 and turn focus back to 135.50 key support level.
In the bigger picture, loss of upside momentum was seen in bearish divergence condition in daily and weekly MACD. However, EUR/JPY is so far holding above 135.50 key support. Thus, there is no confirmation of trend reversal yet. Break of 145.68 will extend the up trend from 94.11 towards 76.4% retracement of 169.96 to 94.11 at 152.59 before topping. Meanwhile, break of 135.50 will confirm reversal and target 124.95 support.
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