EUR/JPY may fall 80 - 117 pips

Our pivot point is at 168.88.

Our preference

The downside prevails as long as 168.88 is resistance.

Alternative scenario

Above 168.88, look for 169.52 and 169.90.

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 stands below its 20 and 50 period moving average (respectively at 168.79 and 169.35). Finally, the EUR/JPY is trading below its lower Bollinger band (standing at 168.30).

Supports and resistances

169.90 **

169.52 *

168.88 **

168.63

168.20 last

167.40

167.03 **

166.65 *

166.27 **

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