GBP/JPY may fall 98 - 143 pips

Our pivot point is at 190.60.

Our preference

The downside prevails as long as 190.60 is resistance.

Alternative scenario

Above 190.60, look for 191.34 and 191.78.

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 stands below its 20 and 50 period moving average (respectively at 190.65 and 191.53).

Supports and resistances

191.78 **

191.34 *

190.60 **

190.30

189.85 last

188.87

188.42 **

187.98 *

187.54 **

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