GBP/JPY may fall 130 - 188 pips

Our pivot point is at 196.58.

Our preference

Target 193.91.

Alternative scenario

The upside breakout of 196.58, would call for 197.57 and 198.15.

Comment

The RSI is below its neutrality area at 50. The MACD is below its signal line and positive. The MACD must penetrate its zero line to expect further downside. Moreover, the pair is trading under its 20 period moving average (196.01) but above its 50 period moving average (195.72).

Supports and resistances

198.15 **

197.57 *

196.58 **

196.20

195.79 last

194.49

193.91 **

193.32 *

192.74 **

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