GBP/JPY may rise 123 - 182 pips

Our pivot point stands at 196.22.

Our preference

The upside prevails as long as 196.22 is support.

Alternative scenario

The downside breakout of 196.22 would call for 195.23 and 194.65.

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 196.39 and 196.13).

Supports and resistances

200.04 **

199.45 *

198.86 **

198.27

197.04 last

196.61

196.22 **

195.23 *

194.65 **

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