GBP/JPY may rise 122 - 181 pips

196.20 is our pivot point.

Our preference

Rebound.

Alternative scenario

The downside breakout of 196.20 would call for 195.21 and 194.63.

Comment

The RSI is above 50. The MACD is negative and above its signal line. The MACD must break above its zero level to trigger further gains. Moreover, the price stands below its 20 and 50 period moving average (respectively at 197 and 197.06).

Supports and resistances

199.99 **

199.40 *

198.81 **

198.22

197.00 last

196.59

196.20 **

195.21 *

194.63 **

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