GBP/JPY may rise 101 - 149 pips

199.81 is our pivot point.

Our preference

Look for a drop towards 199.81 before a bounce.

Alternative scenario

The downside breakout of 199.81 would call for 199.01 and 198.53.

Comment

The RSI is above its neutrality area at 50. The MACD is negative and below its signal line. The penetration of 50 on the RSI should trigger further losses. Moreover, the price is below its 20 period moving average (200.57) but above its 50 period moving average (200.51).

Supports and resistances

202.98 **

202.50 *

202.03 **

201.55

200.54 last

200.12

199.81 **

199.01 *

198.53 **

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