GBP/JPY
Daily Pivots: (S1) 172.66; (P) 173.12; (R1) 173.57;
Intraday bias in the GBP/JPY remains on the downside for 172.36 support first. 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 Pivots: (S1) 136.74; (P) 137.02; (R1) 137.33;
With 137.49 minor resistance intact, further fall is expected in the EUR/JPY. The cross is in the third leg of the pattern from 145.68 and should target 136.22 support next. On the upside, above 137.49 will turn bias neutral and bring consolidations before staging another decline.
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.
