EUR/JPY may fall 111 - 165 pips

Our pivot point is at 162.08.

Our preference

The downside prevails as long as 162.08 is resistance.

Alternative scenario

The upside breakout of 162.08, would call for 162.99 and 163.54.

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 stands below its 20 and 50 period moving average (respectively at 162 and 162.15).

Supports and resistances

163.54 **

162.99 *

162.08 **

161.72

161.22 last

160.11

159.57 **

159.02 *

158.48 **

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