GBP/JPY may rise 112 - 167 pips

Our pivot point stands at 194.46.

Our preference

As long as 194.46 is support look for 196.85.

Alternative scenario

Below 194.46, expect 193.54 and 192.99.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is below its signal line and positive. The pair could retrace. Moreover, the price is above its 20 and 50 period moving average (respectively at 194.67 and 193.35).

Supports and resistances

197.94 **

197.40 *

196.85 **

196.30

195.18 last

194.82

194.46 **

193.54 *

192.99 **

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