GBP/JPY may fall 103 - 150 pips

Our pivot point stands at 198.68.

Our preference

The downside prevails as long as 198.68 is resistance.

Alternative scenario

The upside breakout of 198.68, would call for 199.48 and 199.96.

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 below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 199.53 and 199.65).

Supports and resistances

199.96 **

199.48 *

198.68 **

198.37

197.77 last

196.74

196.27 **

195.79 *

195.32 **

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