GBP/JPY Daily Outlook
Daily Pivots: (S1) 172.68; (P) 172.86; (R1) 173.11;
At this point, deeper decline is still in favor in GBP/JPY for 172.36 support. Break there will confirm near term reversal and turn outlook bearish for 170.95 support. In that case, we'll pay close attention to the reaction from 169.53 key support level. Meanwhile, above 174.54 will mix up the outlook and turn focus back to 175.36 resistance again.
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) 136.55; (P) 136.86; (R1) 137.37;
A temporary low is formed at 136.36 in EUR/JPY and intraday bias is turned neutral first. With 137.71 resistance intact, deeper fall is still expected in the cross. It's in the e third leg of the pattern from 145.68 and below 136.36 will target 136.22 and below. However, break of 137.71 will indicate reversal and target 139.27 resistance next.
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.