GBP/JPY may fall 88 - 132 pips

Our pivot point stands at 201.83.

Our preference

The downside prevails as long as 201.83 is resistance.

Alternative scenario

Above 201.83, look for 202.57 and 203.01.

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 negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 201.99 and 202.50).

Supports and resistances

203.01 **

202.57 *

201.83 **

201.55

201.19 last

200.31

199.87 **

199.44 *

199.00 **

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