Daily Currency Outlook: GPB/JPY And EUR/JPY : March 09,2018

GBP/JPY Daily Outlook

Daily Pivots: (S1) 146.08; (P) 146.86; (R1) 147.47;

GBP/JPY is staying in consolidation from 144.97. Intraday bias remains neutral first. In case of stronger recovery, upside should be limited below 150.92 resistance and bring fall resumption. On the downside, break of 144.97 will extend the fall from 156.69 to 143.51 medium term fibonacci level next. We’ll look for bottoming signal there. But firm break will target 139.29 support.

In the bigger picture, the case for medium term reversal continues to build up. There is bearish pergence condition in daily MACD. 146.96 support was taken out. And GBP/JPY was rejected by 55 month EMA. Break of 38.2% retracement of 122.36 to 156.59 at 143.51 will pave the way to 61.8% retracement at 135.43 and below. This will now be the preferred case as long as 150.92 resistance holds.

GBP/JPY 4 Hour Chart

GBP/JPY Daily Chart

EUR/JPY Daily Outlook

Daily Pivots: (S1) 130.18; (P) 131.07; (R1) 131.64;

At this point, EUR/JPY’s rebound from 129.34 short term bottom should still extend higher to 38.2% retracement of 137.49 to 129.34 at 132.45. We’d be cautious on strong resistance from there to limit upside. Break of 129.34 will resume the whole decline from 137.49 to 126.61 medium term fibonacci level. Nonetheless, sustained break of 132.45 will target 61.8% retracement at 134.37 first, before resuming the fall from 137.49.

In the bigger picture, current development argues that rise from 109.03 has completed at 137.49, on bearish pergence condition in weekly MACD. Deeper fall should be seen to 38.2% retracement of 109.03 to 137.49 at 126.61 first. On the upside, break of 137.49 is needed to confirm medium term rise resumption. Otherwise, risk will now stay on the downside even in case of strong rebound.

EUR/JPY 4 Hour Chart

EUR/JPY Daily Chart

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