GBP/JPY Daily Outlook
Daily Pivots: (S1) 173.29; (P) 173.64; (R1) 173.89;
Intraday bias in GBP/JPY remains neutral for the moment. On the downside, sustained break of 172.36 support will confirm near term reversal and will turn outlook bearish for 170.95 support next.
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. There is no clear sign of reversal yet but a medium term top should be near. So, in case of another rise, 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.
EUR/JPY Daily Outlook
Daily Pivots: (S1) 137.47; (P) 137.66; (R1) 137.81;
Intraday bias in EUR/JPY remains mildly on the upside for the moment. A short term bottom is formed at 136.36 on bullish convergence in 4 hours MACD. Further rise would be seen to 139.27 resistance and break there will confirm completion of the choppy fall from 143.78 and will turn near term outlook bullish. On the downside, below 136.83 minor support will turn bias back to the downside for 135.50 key support level.
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.
