GBP/JPY may rise 76 - 113 pips

204.90 is our pivot point.

Our preference

Look for a drop towards 204.90 before a bounce.

Alternative scenario

Below 204.90, expect 204.28 and 203.91.

Comment

The RSI is above its neutrality area at 50. The MACD is negative and below its signal line. The penetration of 50 on the RSI would call for further downside. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 205.41 and 205.37).

Supports and resistances

207.31 **

206.94 *

206.58 **

206.21

205.45 last

205.15

204.90 **

204.28 *

203.91 **

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