GBP/JPY
Daily Pivots: (S1) 172.73; (P) 173.33; (R1) 173.67;
GBP/JPY reached as high as 173.95 but retreated from there. Intraday bias is turned neural first. With 171.67 support intact, further rally is still expected for 175.36 resistance. Price actions from 175.36 could be developing into a sideway pattern. Thus, we'd be cautious on reversal from there to extend the pattern. On the downside, below 171.67 will turn bias back to the downside.
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. However, 169.53 structural support remains firmly intact and thus there is no confirmation of reversal yet. Another rally could still be seen. But in that case, 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) 137.26; (P) 137.67; (R1) 138.43;
EUR/JPY's break of 138.02 resistance completed a head and shoulder bottom pattern (ls: 136.36, h: 135.72, rs: 136.41). That is taken as an indication of near term reversal. Intraday bias is back on the upside for 139.27 resistance first. Break will target 143.78/145.68 resistance zone. On the downside, break of 13641 support will turn focus back to 135.50 key support level instead.
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.
