EUR/JPY may fall 89 - 126 pips

Our pivot point is at 165.84.

Our preference

The downside prevails as long as 165.84 is resistance.

Alternative scenario

The upside breakout of 165.84, would call for 166.46 and 166.84.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (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 166.17 and 166.80).

Supports and resistances

166.84 **

166.46 *

165.84 **

165.60

165.34 last

164.45

164.08 **

163.71 *

163.34 **

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