GBP/JPY may rise 131 - 190 pips

Our pivot point stands at 186.84.

Our preference

The upside prevails as long as 186.84 is support.

Alternative scenario

The downside breakout of 186.84 would call for 185.85 and 185.26.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 186.46 and 186.10).

Supports and resistances

190.82 **

190.23 *

189.64 **

189.05

187.74 last

187.23

186.84 **

185.85 *

185.26 **

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