GBP/JPY may rise 118 - 176 pips

Our pivot point stands at 194.39.

Our preference

Rebound.

Alternative scenario

The downside breakout of 194.39 would call for 193.41 and 192.83.

Comment

The RSI is above 50. The MACD is above its signal line and negative. The MACD must break above its zero level to trigger further gains. Moreover, the price is trading above its 20 period moving average (195.10) but under its 50 period moving average (195.31).

Supports and resistances

198.12 **

197.54 *

196.96 **

196.38

195.20 last

194.77

194.39 **

193.41 *

192.83 **

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