GBP/JPY may rise 62 - 91 pips

Our pivot point stands at 206.48.

Our preference

The upside prevails as long as 206.48 is support.

Alternative scenario

The downside breakout of 206.48 would call for 205.99 and 205.70.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 206.61 and 206.41). Finally, the GBP/JPY has crossed above its upper Bollinger band (206.90).

Supports and resistances

208.42 **

208.13 *

207.84 **

207.55

206.93 last

206.67

206.48 **

205.99 *

205.70 **

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