EUR/JPY may fall 92 - 132 pips

Our pivot point stands at 165.73.

Our preference

The downside prevails as long as 165.73 is resistance.

Alternative scenario

Above 165.73, look for 166.41 and 166.82.

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 165.68 and 166.57).

Supports and resistances

166.82 **

166.41 *

165.73 **

165.46

165.00 last

164.08

163.68 **

163.27 *

162.86 **

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