GBP/JPY may fall 90 - 132 pips

Our pivot point stands at 198.35.

Our preference

The downside prevails as long as 198.35 is resistance.

Alternative scenario

The upside breakout of 198.35, would call for 199.08 and 199.50.

Comment

The RSI is below 50. 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 197.96 and 198.01). Finally, the GBP/JPY is trading below its lower Bollinger band (standing at 197.48).

Supports and resistances

199.50 **

199.08 *

198.35 **

198.07

197.42 last

196.52

196.10 **

195.67 *

195.24 **

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