GBP/JPY
Daily Pivots: (S1) 170.17; (P) 171.25; (R1) 171.92;
Intraday bias in the GBP/JPY remains on the downside for 169.50 support. As noted before, consolidation pattern from 174.84 is expected to have another falling leg before completion. Break of 169.50 will indicates that the third leg has started and should target 167.77 support and below. On the upside, ,above 172.34 will mixed up the outlook again. But after all, in case of another rise, strong resistance should be seen from 174.84 to bring reversal.
In the bigger picture, the up trend from 116.83 (2011 low) might still extend to above 174.84. Nonetheless, upside momentum is rather unconvincing as seen in weekly MACD. Thus, even in that case, we'd expect strong resistance from 50% retracement retracement of 251.09 to 116.83 at 183.96 to limit upside. Meanwhile, sustained break of 163.87 support should confirm medium term topping at 174.84 and bring deeper correction to 147.61/156.77 support zone next.
EUR/JPY
Daily Pivots: (S1) 139.36; (P) 139.82; (R1) 140.17;
The EUR/JPY's fall resumed after brief consolidations and reaches as low as 139.45 so far and intraday bias is back on the downside. We're favoring the case that rebound from 136.22 has completed at 143.78 already. And, the consolidation pattern from 145.68 has started the third leg down. Deeper decline should be see back to 136.22 support and below. Above 140.94 minor resistance will turn bias neutral and bring consolidations again before staging another fall.
In the bigger picture, loss of upside momentum was seen in bearish divergence condition in daily and 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.
