GBP/JPY may fall 169 - 237 pips

Our pivot point is at 190.48.

Our preference

The downside prevails as long as 190.48 is resistance.

Alternative scenario

The upside breakout of 190.48, would call for 191.62 and 192.30.

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 190.92 and 191.18). Finally, the GBP/JPY is trading below its lower Bollinger band (standing at 189.60).

Supports and resistances

192.30 **

191.62 *

190.48 **

190.04

189.30 last

187.61

186.93 **

186.26 *

185.59 **

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