GBP/JPY may fall 97 - 140 pips

Our pivot point stands at 197.17.

Our preference

The downside prevails as long as 197.17 is resistance.

Alternative scenario

Above 197.17, look for 197.89 and 198.32.

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 197.71 and 198.48).

Supports and resistances

198.32 **

197.89 *

197.17 **

196.89

196.54 last

195.57

195.14 **

194.72 *

194.29 **

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