GBP/JPY may rise 59 - 88 pips

Our pivot point is at 207.32.

Our preference

The upside prevails as long as 207.32 is support.

Alternative scenario

The downside breakout of 207.32 would call for 206.83 and 206.54.

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 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 207.36 and 206.83).

Supports and resistances

209.19 **

208.90 *

208.61 **

208.32

207.73 last

207.51

207.32 **

206.83 *

206.54 **

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