GBP/JPY may fall 99 - 142 pips

Our pivot point is at 197.02.

Our preference

The downside prevails as long as 197.02 is resistance.

Alternative scenario

The upside breakout of 197.02, would call for 197.74 and 198.16.

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 negative and below its signal line. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 197.06 and 198.11).

Supports and resistances

198.16 **

197.74 *

197.02 **

196.74

196.31 last

195.32

194.89 **

194.46 *

194.04 **

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