USD/JPY may fall 111 - 166 pips

Our pivot point stands at 144.92.

Our preference

The downside prevails as long as 144.92 is resistance.

Alternative scenario

The upside breakout of 144.92, would call for 145.84 and 146.38.

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 below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 145.22 and 145.63).

Supports and resistances

146.38 **

145.84 *

144.92 **

144.56

144.13 last

143.02

142.47 **

141.93 *

141.38 **

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