GPB/JPY And EUR/JPY Currency Outlook: July 29, 2014
ActionForex | Jul 29, 2014 02:59AM ET
Daily Pivots: (S1) 172.79; (P) 172.93; (R1) 173.12;
The GBP/JPY continues to stay in right range above 172.36 support and intraday bias remains neutral for the moment. On the downside, sustained break of 172.36 support will confirm near term reversal and will turn outlook bearish for 170.95 support next. On the upside, break of 174.54 will suggest that the consolidation from 175.36 might have finished and will turn bias back to the upside for 175.36 and above.
In the bigger picture, the up trend from 116.83 (2011 low) continued to lose upside momentum. This could be seen in bearish divergence condition in daily MACD. And, weekly MACD continued to trend down. There is no clear sign of reversal yet but a medium term top should be near. So, in case of another rise, we'd expect strong resistance below 50% retracement retracement of 251.09 to 116.83 at 183.96 to bring reversal. Meanwhile, sustained break of 169.53 support should confirm medium term topping and turn outlook bearish.
EUR/JPY/h3
Daily Pivots: (S1) 136.70; (P) 136.81; (R1) 136.98;
The EUR/JPY continues to stay in consolidation above 136.36 and intraday bias remains neutral. As long as 137.71 resistance holds, deeper decline is still expected in the cross. It's now in the third leg of the pattern from 145.68 and should target 136.22 support. However, break of 137.71 resistance would be the first sign of near term reversal and wold turn bias back to the upside for 139.27 resistance for confirmation.
In the bigger picture, loss of upside momentum was seen in bearish divergence condition in weekly MACD. However, the 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.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.