GBP/JPY may rise 122 - 180 pips

Our pivot point stands at 194.96.

Our preference

The upside prevails as long as 194.96 is support.

Alternative scenario

The downside breakout of 194.96 would call for 193.98 and 193.40.

Comment

The RSI is above its neutrality area at 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 195.39 and 195.12). Finally, the GBP/JPY is trading above its upper Bollinger band (standing at 195.76).

Supports and resistances

198.74 **

198.16 *

197.58 **

197.00

195.78 last

195.34

194.96 **

193.98 *

193.40 **

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