GPB/JPY And EUR/JPY Currency Outlook: March 5, 2014
ActionForex | Mar 05, 2014 06:52AM ET
GBP/JPY Daily Outlook
Daily Pivots: (S1) 169.33; (P) 169.91; (R1) 170.88;
The GBP/JPY continues to engage in sideway trading in range below 171.88 and intraday bias remains neutral. On the upside, ,above 171.88 will extend the rebound from 163.87 and should target 173.65/174.84 resistance zone. Considering that the cross is limited by near term falling trend line, break of 168.82 will indicate that such rebound is completed and will turn bias back to the downside for retesting 163.87 instead.
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) 139.63; (P) 140.08; (R1) 140.89;
The EUR/JPY continues to stay in range below 141.26 temporary top and intraday bias remains neutral. On the upside, break of 141.26 will confirm resumption of the rebound and should send the cross through 142.41 resistance to 100% projection of 136.22 to 141.26 from 138.78 at 143.82. Meanwhile, break of 138.78 will turn bias back to the downside for 136.22 support and below.
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.
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.