GBP/JPY may rise to 210.29 - 212.28

Our pivot point stands at 203.23.

Our preference

The upside prevails as long as 203.23 is support.

Alternative scenario

The downside breakout of 203.23 would call for 199.89 and 197.90.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 201.97 and 198.22).

Supports and resistances

216.27 **

214.27 *

212.28 **

210.29

206.15 last

204.54

203.23 **

199.89 *

197.90 **

Number of asterisks represents the strength of support and resistance levels.