Daily Currency Outlook: EUR/JPY And GBP/JPY : May 15,2018

EUR/JPY Daily Outlook

Daily Pivots: (S1) 130.39; (P) 130.88; (R1) 131.27;

With 129.99 minor support intact, EUR/JPY’s rebound from 129.22 could extend higher, possibly to 55 day EMA (now at 131.59). But we’d expect strong resistance below 133.47 resistance to bring fall resumption. Below 129.99 minor support will turn bias back to the downside for 128.94. Break will resume the corrective fall from 137.49 and target 61.8% projection of 137.49 to 128.94 from 133.47 at 128.18 next.

EUR/JPY 4 Hour Chart

In the bigger picture, for now, price actions from 137.49 are viewed as a corrective pattern only. Hence, while, deeper decline would be seen, strong support is expected at 38.2% retracement of 109.03 to 137.49 at 126.61 to contain downside and bring rebound. Up trend from 109.03 (2016 low) is expected to resume afterwards. Though, sustained break of 126.61 will be an important sign of trend reversal and will turn focus to 124.08 resistance turned support.

EUR/JPY Daily Chart

GBP/JPY Daily Outlook

Daily Pivots: (S1) 148.03; (P) 148.55; (R1) 149.15;

Intraday bias in GBP/JPY remains neutral for the moment. Consolidation from 147.04 temporary low could extend. But upside should be limited below 150.60 support turned resistance to bring fall resumption. Below 147.04 will target 144.97 first. Break there will resume the fall from 156.59 and target 100% projection of 156.59 to 144.97 from 153.84 at 142.22 next.

GBP/JPY 4 Hour Chart

In the bigger picture, for now, we’re treating price actions from 156.59 as a corrective move. Therefore, while deeper fall is expected, strong support should be seen above 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47) to contain downside and bring rebound. There is still prospect of extending the rise from 122.36. However, considering that GBP/JPY failed to sustain above 55 month EMA (now at 153.94), firm break of 139.29 will confirm trend reversal and turn outlook bearish.

GBP/JPY Daily Chart

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