GBP/JPY may rise 118 - 177 pips

Our pivot point stands at 196.16.

Our preference

Rebound towards 198.72.

Alternative scenario

The downside breakout of 196.16 would call for 195.17 and 194.58.

Comment

The RSI is below 50. The MACD is above its signal line and negative. The configuration is mixed. Moreover, the price stands above its 20 period moving average (196.92) but below its 50 period moving average (196.97).

Supports and resistances

199.89 **

199.31 *

198.72 **

198.13

196.95 last

196.55

196.16 **

195.17 *

194.58 **

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