GBP/JPY may fall 155 - 197 pips

182.05 is our pivot point.

Our preference

The downside prevails as long as 182.05 is resistance.

Alternative scenario

The upside breakout of 182.05, would call for 182.76 and 183.19.

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 183.41 and 186.28).

Supports and resistances

183.19 **

182.76 *

182.05 **

181.77

181.38 last

179.83

179.41 **

178.99 *

178.57 **

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