GBP/JPY
Daily Pivots: (S1) 174.07; (P) 174.66; (R1) 175.06;
Intraday bias in the GBP/JPY remains neutral for the moment and some consolidations would be seen below 175.36 temporary top. But downside should be contained by 174.09 support and bring another rally. Above 175.36 will target next long term fibonacci level at 183.96. On the downside, however, break of 174.09 will indicate near term reversal and turn bias back to the downside for 172.36 support first.
In the bigger picture, the up trend from 116.83 (2011 low) is still in progress. 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) 138.40; (P) 138.61; (R1) 138.79;
The EUR/JPY weakens mildly after hitting 139.27 but it's staying in established range above 137.71 low. Intraday bias remains neutral first. Near term outlook is bearish with 140.09 resistance intact and another fall in expected. The cross is in the third leg of the pattern from 145.68. Break of 137.71 will target 136.22 support next. On the upside, break of 140.09 will indicate near term reversal and turn bias back to the upside for 143.78 resistance.
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.
