User blog comment:Selim 009/Seven Dragons Vs. Seven Dragon Slayers/@comment-15382134-20130428203745/@comment-7418318-20130428205920

While that Dragon does look quite fishy (pun totally intended), considering the kind of powerup the other people got from the Lacryma in their bodies, I think she would have noticed something like that happening to her.

Also the way Jose talked about Laxus' Lacryma and how he wanted to get them out again makes it seem like they are physical objects and stay that way even after implantation. So if Juvia turns into water wouldn't those Lacryma stay stolid and thus fall out of her so to say?