GBP/JPY may fall 89 - 132 pips

198.73 is our pivot point.

Our preference

Target 196.54.

Alternative scenario

The upside breakout of 198.73, would call for 199.45 and 199.88.

Comment

The RSI is below 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the pair is trading under its 20 period moving average (197.98) but above its 50 period moving average (197.75).

Supports and resistances

199.88 **

199.45 *

198.73 **

198.45

197.86 last

196.97

196.54 **

196.11 *

195.69 **

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