EUR/JPY may fall 78 - 115 pips

Our pivot point stands at 170.68.

Our preference

The downside prevails as long as 170.68 is resistance.

Alternative scenario

The upside breakout of 170.68, would call for 171.31 and 171.68.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 170.53 and 170.55). Finally, the EUR/JPY has penetrated its lower Bollinger band (170.01).

Supports and resistances

171.68 **

171.31 *

170.68 **

170.44

169.91 last

169.13

168.76 **

168.39 *

168.02 **

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