GPB/JPY And EUR/JPY Outlook: September 01, 2014
ActionForex | Sep 01, 2014 05:19AM ET
Daily Pivots: (S1) 172.18; (P) 172.49; (R1) 173.03;
GBP/JPY's rebound from 170.42 continues today and reaches as high as 173.19 so far. Intraday bias remains on the upside for 174.21/175.36 resistance zone. Price actions from 175.36 could be developing into a sideway pattern. Thus, we'd be cautious on reversal from there to extend the pattern. On the downside, below 171.67 minor support will turn bias back to the downside for 169.53 key support 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. However, 169.53 structural support remains firmly intact and thus there is no confirmation of reversal yet. Another rally could still be seen. 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. Meanwhile, sustained break of 169.53 support should confirm medium term topping and turn outlook bearish.
Daily Pivots: (S1) 136.45; (P) 136.81; (R1) 137.06;
Intraday bias in EUR/JPY remains neutral for the moment. With 138.02 intact, deeper decline is still mildly in favor for 135.50 key support level. Decisive break there will carry larger bearish implications. Nonetheless, break of 138.02 will indicate near term reversal and turn outlook bullish for stronger rebound back to 139.27 resistance.
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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