EUR/JPY may rise 53 - 78 pips

172.26 is our pivot point.

Our preference

Rebound towards 173.40.

Alternative scenario

The downside breakout of 172.26 would call for 171.85 and 171.61.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is above its signal line and negative. The configuration is mixed. Moreover, the price stands below its 20 and 50 period moving average (respectively at 172.93 and 174.26).

Supports and resistances

173.89 **

173.64 *

173.40 **

173.15

172.62 last

172.43

172.26 **

171.85 *

171.61 **

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