GBP/JPY may fall 94 - 138 pips

Our pivot point is at 189.31.

Our preference

The downside prevails as long as 189.31 is resistance.

Alternative scenario

The upside breakout of 189.31, would call for 190.05 and 190.49.

Comment

The RSI is below its neutrality area at 50. 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 189.46 and 190.11). Finally, the GBP/JPY has penetrated its lower Bollinger band (188.49).

Supports and resistances

190.49 **

190.05 *

189.31 **

189.02

188.31 last

187.37

186.93 **

186.49 *

186.05 **

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