ANZ - "USD/JPY: The dips from the tests of 103.80 and 101.50 in recent months are seen as interim legs within a broader corrective pattern. The near term bias is that the recent dip below 0.9650 formed a base from which USD/JPY should be able to post another push into the 101.50-103.80 area in coming weeks.
Assuming that such a move shows signs of faltering, this profile would suggest that another corrective pullback should then develop. However, that pullback should be seen as the final leg of the corrections off 103.80 and then allow for a return to the preceding uptrend for initially a push towards the 1.10-1.12 area. A minor caveat can be drawn from the USD TWI chart. Should the current rebounds show signs of accelerating, there is a risk of an early resumption of the uptrend.
EUR/GBP: Although the push above 0.8750 appeared dynamic, the overall pattern off the April test of 0.8400 has been one of overlapping interim moves. This is indicative of an interim corrective leg. The roll-over of daily momentum and break below 0.8650 therefore provide the basis for a more dynamic, but still range defining, slide to at least retest the 0.8400 are if not a measured move to 0.8350. The possibility of a deeper slide towards 0.8285 (an interim 50% retracement) should not be denied, but the bias is that apparently impulsive moves will continue to falter as a trading range continues. A near term push above 0.8625 is needed to suggest a more EUR positive tone."