USD/JPY may fall 112 - 167 pips

Our pivot point stands at 146.16.

Our preference

The downside prevails as long as 146.16 is resistance.

Alternative scenario

The upside breakout of 146.16, would call for 147.09 and 147.64.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 146.05 and 146.46).

Supports and resistances

147.64 **

147.09 *

146.16 **

145.80

145.42 last

144.30

143.75 **

143.20 *

142.65 **

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