GBP/JPY
Daily Pivots: (S1) 171.98; (P) 172.26; (R1) 172.52;
Overall outlook in the GBP/JPY remains unchanged. The sideway consolidation pattern from 174.84 is still in progress and could extend further. We'd expect strong resistance below 174.84 to limit upside and bring another fall. Break of 169.53 will target 163.87 support.
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) 139.05; (P) 139.57; (R1) 139.87;
At this point, rebound from 137.97 could still extend higher. But after all, EUR/JPY is staying inside the sideway pattern from 145.68. We'd expect strong resistance from upper trend line (now at 142.10) to limit upside and bring reversal. Meanwhile, below 137.97 will extend the fall from 143.78 and turn bias to the downside for 136.22 support and below.
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.
