GBP/JPY
Daily Pivots: (S1) 173.54; (P) 174.04; (R1) 174.81;
The strong rebound and breach of 174.41 minor resistance dampens this original bearish view. And it suggests that the GBP/JPY's up trend is still in progress. Intraday bias is back on the upside for 175.36 resistance. Break will target 180 psychological level next. But we'll pay attention to loss of momentum in that case. Meanwhile, below 172.95 will turn bias back to the downside for 172.36 support instead.
In the bigger picture, the up trend from 116.83 (2011 low) might continue higher. But again, as medium term momentum is unconvincing as seen in weekly MACD. Thus, we'd expect strong resistance from 50% retracement retracement of 251.09 to 116.83 at 183.96 to limit upside and bring reversal. Meanwhile, sustained break of 169.53 support should confirm medium term topping and turn outlook bearish.
EUR/JPY
Daily Pivots: (S1) 137.77; (P) 138.09; (R1) 138.31;
Intraday bias in the EUR/JPY remains neutral for the moment but with 138.75 minor resistance intact, deeper decline is still expected. As noted before, the cross in in the third leg of the pattern from 145.68. Below 137.49 will target 136.22 support next. On the upside, above 138.75 will turn focus back to 139.27 resistance and break will indicates near term reversal.
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.
