GBP/JPY may rise 121 - 180 pips

Our pivot point stands at 188.20.

Our preference

The upside prevails as long as 188.20 is support.

Alternative scenario

The downside breakout of 188.20 would call for 187.20 and 186.61.

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 positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 188.33 and 187.71).

Supports and resistances

192.01 **

191.41 *

190.82 **

190.23

189.02 last

188.59

188.20 **

187.20 *

186.61 **

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