GBP/JPY may fall 92 - 128 pips

Our pivot point is at 204.55.

Our preference

The downside prevails as long as 204.55 is resistance.

Alternative scenario

The upside breakout of 204.55, would call for 205.16 and 205.53.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 204.88 and 205.20).

Supports and resistances

205.53 **

205.16 *

204.55 **

204.30

203.94 last

203.02

202.66 **

202.29 *

201.92 **

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