GBP/JPY may fall 138 - 204 pips

Our pivot point stands at 186.40.

Our preference

Target 183.37.

Alternative scenario

The upside breakout of 186.40, would call for 187.52 and 188.18.

Comment

The RSI is below 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the pair is trading under its 20 period moving average (185.77) but above its 50 period moving average (185.21).

Supports and resistances

188.18 **

187.52 *

186.40 **

185.97

185.41 last

184.03

183.37 **

182.70 *

182.04 **

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