GBP/JPY may rise 121 - 180 pips

Our pivot point is at 194.30.

Our preference

The upside prevails as long as 194.30 is support.

Alternative scenario

Below 194.30, expect 193.31 and 192.72.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 194.60 and 194.27).

Supports and resistances

198.11 **

197.52 *

196.93 **

196.34

195.13 last

194.69

194.30 **

193.31 *

192.72 **

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