GBP/JPY may fall 98 - 144 pips

Our pivot point stands at 196.70.

Our preference

The downside prevails as long as 196.70 is resistance.

Alternative scenario

The upside breakout of 196.70, would call for 197.47 and 197.93.

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 is trading under both its 20 and 50 period moving average (respectively at 196.64 and 197.77).

Supports and resistances

197.93 **

197.47 *

196.70 **

196.40

195.80 last

194.82

194.36 **

193.90 *

193.44 **

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