GBP/JPY may fall 134 - 180 pips

Our pivot point stands at 198.93.

Our preference

The downside prevails as long as 198.93 is resistance.

Alternative scenario

The upside breakout of 198.93, would call for 199.71 and 200.17.

Comment

The RSI is below 50. 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 198.77 and 198.32). Finally, the GBP/JPY is trading below its lower Bollinger band (standing at 197.95).

Supports and resistances

200.17 **

199.71 *

198.93 **

198.63

197.75 last

196.41

195.95 **

195.49 *

195.03 **

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