EUR/JPY may fall 77 - 114 pips

Our pivot point stands at 171.03.

Our preference

The downside prevails as long as 171.03 is resistance.

Alternative scenario

Above 171.03, look for 171.65 and 172.02.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (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 170.59 and 170.60). Finally, the EUR/JPY has penetrated its lower Bollinger band (170.34).

Supports and resistances

172.02 **

171.65 *

171.03 **

170.78

170.20 last

169.43

169.06 **

168.69 *

168.31 **

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