EUR/JPY may fall 83 - 124 pips

Our pivot point stands at 166.28.

Our preference

The downside prevails as long as 166.28 is resistance.

Alternative scenario

Above 166.28, look for 166.97 and 167.38.

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 below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 166.58 and 166.81).

Supports and resistances

167.38 **

166.97 *

166.28 **

166.01

165.70 last

164.87

164.46 **

164.05 *

163.64 **

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