GPB/JPY Outlook: Medium Term Top In Place
ActionForex | Aug 14, 2013 04:06AM ET
Daily Pivots: (S1) 150.27; (P) 151.17; (R1) 152.61;
The break of 151.31 indicates that pull back from 154.04 has completed at 147.61 already. Intraday bias is back on the upside. Consolidation pattern from 147.10 is set to extend further and strong rise would be seen to 154.04 and above. Nonetheless, we'd continue to expect strong resistance below 156.77 to bring reversal for another fall inside the pattern from 156.77.
In the bigger picture, a medium term top is in place at 156.77 on bearish divergence condition in daily MACD. Deeper pull back could be seen to 38.2% retracement of 118.82 to 156.77 at 142.27. Strong support would likely be seen at 140.37 to bring rebound, at least on first attempt. Overall, we'd still expect whole rise from 116.83 medium term bottom to resume later to 163.05 resistance and above after completing the correction.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 129.19; (P) 129.82; (R1) 130.87;
As noted before, current development argues that pull back from 132.73 has completed at 127.96 already. Also, choppy rebound from 124.95 might be resuming. Intraday bias is cautiously on the upside for 131.96 resistance. Break will confirm this case and should target 132.73 and above. Meanwhile, below 127.96 will bring deeper fall towards 124.95.
In the bigger picture, current development argues that the medium term up trend from 94.11 has topped out at 133.80 on bearish divergence condition in daily MACD. Consolidation from there could extend with another fall to target 119.10 cluster support (38.2% retracement of 94.11 to 133.80 at 118.63). Strong support would be seen there, at least on initial attempt. But, break will target 61.8% retracement at 109.27. Nonetheless, considering the five wave structure of the rise from 94.11, we'd expect another medium term rally after completing the correction.
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