EUR/JPY may fall 88 - 126 pips

Our pivot point is at 169.20.

Our preference

The downside prevails as long as 169.20 is resistance.

Alternative scenario

The upside breakout of 169.20, would call for 169.85 and 170.23.

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 169.93 and 170.03).

Supports and resistances

170.23 **

169.85 *

169.20 **

168.95

168.53 last

167.65

167.27 **

166.89 *

166.50 **

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