GBP/JPY may rise 157 - 229 pips

Our pivot point is at 190.06.

Our preference

The upside prevails as long as 190.06 is support.

Alternative scenario

The downside breakout of 190.06 would call for 188.84 and 188.12.

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 trading above both its 20 and 50 period moving average (respectively at 190.34 and 190.16). Finally, the GBP/JPY has crossed above its upper Bollinger band (191.19).

Supports and resistances

194.93 **

194.21 *

193.48 **

192.76

191.19 last

190.53

190.06 **

188.84 *

188.12 **

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