GPB/JPY And EUR/JPY Currency Outlook: September 11, 2014
ActionForex | Sep 11, 2014 05:23AM ET
Daily Pivots: (S1) 171.72; (P) 172.49; (R1) 173.98;
Intraday bias in the GBP/JPY remain son the upside for 173.95 resistance. Break will confirm completion of the correction pattern from 175.36 at 169.34, just defended 169.53 key support. In such case, stronger rally should be seen to retest 175.36 high. Though, below 171.67 will turn focus back to 169.34/53 instead.
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. Sustained break of 169.53 support should confirm medium term topping at 1175.36 and turn outlook bearish for 38.2% retracement of 116.83 to 175.36 at 153.00. Before that, another rally cannot be ruled out. But in that case, we'd expect strong resistance below 50% retracement retracement of 251.09 to 116.83 at 183.96 to bring reversal.
Daily Pivots: (S1) 137.49; (P) 137.83; (R1) 138.35;
The breach of 138.27 minor resistance argues that near term trend is possibly reversal. And, the cross has bottomed at 135.72, just ahead of 135.50 key support level. Intraday bias is back on the upside for 138.27 resistance first. Break will confirm this case and turn outlook bullish. Nonetheless, below 137.28 minor support will turn focus back to 135.50 instead.
In the bigger picture, loss of upside momentum was seen in bearish divergence condition in 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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