GBP/JPY may fall 97 - 144 pips

Our pivot point stands at 200.18.

Our preference

The downside prevails as long as 200.18 is resistance.

Alternative scenario

The upside breakout of 200.18, would call for 200.98 and 201.45.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 200.23 and 200.17). Finally, the GBP/JPY has penetrated its lower Bollinger band (199.56).

Supports and resistances

201.45 **

200.98 *

200.18 **

199.87

199.51 last

198.54

198.07 **

197.60 *

197.12 **

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