GBP/JPY
Daily Pivots: (S1) 172.03; (P) 172.94; (R1) 173.50;
Intraday bias in the GBP/JPY stays neutral with focus on 172.36 support. Decisive break there will confirm near term reversal and will target 170.95 support and then 169.53 key support level. Meanwhile, above 174.21 will turn bias back to the upside for 175.36 and above.
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 Pivots: (S1) 137.51; (P) 137.76; (R1) 137.96;
With 137.24 minor support intact, further rise is still expected in the EUR/JPY. A short term bottom was formed at 136.36 a rebound from there should target 139.27 resistance first. Break will confirm completion of the choppy fall from 143.78 and will turn near term outlook bullish. On the downside, below 137.24 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.
