EUR/JPY may fall 115 - 154 pips

Our pivot point stands at 159.30.

Our preference

The downside prevails as long as 159.30 is resistance.

Alternative scenario

The upside breakout of 159.30, would call for 159.96 and 160.35.

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 is trading under both its 20 and 50 period moving average (respectively at 159.58 and 160.43).

Supports and resistances

160.35 **

159.96 *

159.30 **

159.04

158.70 last

157.55

157.16 **

156.76 *

156.37 **

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