GBP/JPY may fall 149 - 221 pips

Our pivot point stands at 191.39.

Our preference

The downside prevails as long as 191.39 is resistance.

Alternative scenario

The upside breakout of 191.39, would call for 192.60 and 193.32.

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 below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 191.20 and 191.19).

Supports and resistances

193.32 **

192.60 *

191.39 **

190.91

190.31 last

188.82

188.10 **

187.37 *

186.65 **

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