GBP/JPY may fall 88 - 131 pips

Our pivot point stands at 200.74.

Our preference

The downside prevails as long as 200.74 is resistance.

Alternative scenario

Above 200.74, look for 201.47 and 201.90.

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 200.70 and 201.29). Finally, the GBP/JPY has penetrated its lower Bollinger band (200.04).

Supports and resistances

201.90 **

201.47 *

200.74 **

200.45

199.85 last

198.97

198.54 **

198.11 *

197.67 **

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