GBP/JPY may fall 121 - 180 pips

Our pivot point stands at 195.47.

Our preference

Target 192.86.

Alternative scenario

Above 195.47, look for 196.46 and 197.05.

Comment

The RSI is below its neutrality area at 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the price is below its 20 period moving average (194.83) but above its 50 period moving average (194.59). Finally, the GBP/JPY is trading below its lower Bollinger band (standing at 194.67).

Supports and resistances

197.05 **

196.46 *

195.47 **

195.08

194.66 last

193.45

192.86 **

192.27 *

191.68 **

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