EUR/JPY may fall 82 - 123 pips

Our pivot point stands at 167.60.

Our preference

The downside prevails as long as 167.60 is resistance.

Alternative scenario

Above 167.60, look for 168.29 and 168.70.

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 167.40 and 166.96). Finally, the EUR/JPY is trading below its lower Bollinger band (standing at 166.60).

Supports and resistances

168.70 **

168.29 *

167.60 **

167.32

166.19 last

165.37

164.96 **

164.55 *

164.14 **

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