EUR/JPY may fall 82 - 123 pips

Our pivot point is at 166.08.

Our preference

The downside prevails as long as 166.08 is resistance.

Alternative scenario

The upside breakout of 166.08, would call for 166.77 and 167.18.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 166.96 and 166.88).

Supports and resistances

167.18 **

166.77 *

166.08 **

165.81

165.51 last

164.69

164.28 **

163.87 *

163.46 **

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