GBP/JPY may rise 131 - 190 pips

Our pivot point is at 197.30.

Our preference

The upside prevails as long as 197.30 is support.

Alternative scenario

Below 197.30, expect 196.31 and 195.72.

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 197.44 and 196.54).

Supports and resistances

201.19 **

200.60 *

200.00 **

199.41

198.10 last

197.69

197.30 **

196.31 *

195.72 **

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