EUR/JPY
Daily Pivots: (S1) 171.33; (P) 172.29; (R1) 173.03;
The GBP/JPY drops sharply and the strong break of 172.36 support confirmed near term reversal. Also, it's taken as the first sign of medium term topping. Intraday bias is back on the downside for 169.53 key support level. On the upside, break of 173.49 resistance is needed to confirm short term bottoming. Otherwise, outlook stays cautiously bearish.
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) 136.11; (P) 136.67; (R1) 137.19;
The EUR/JPY's breach of 136.36 support indicates that the larger fall is resuming. Intraday bias is back on the downside for 135.50 key support level. Break will carry larger bearish implications. However, as downside momentum isn't too convincing for the moment. Break of 138.20 would likely confirm near term reversal and turn outlook bullish.
In the bigger picture, loss of upside momentum was seen in bearish divergence condition in weekly MACD. However, the 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.
