EUR/JPY may fall 82 - 115 pips

171.66 is our pivot point.

Our preference

The downside prevails as long as 171.66 is resistance.

Alternative scenario

The upside breakout of 171.66, would call for 172.21 and 172.54.

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 below its signal line and negative. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 172.08 and 172.40).

Supports and resistances

172.54 **

172.21 *

171.66 **

171.44

171.13 last

170.31

169.98 **

169.65 *

169.31 **

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