GBP/JPY may rise 89 - 133 pips

Our pivot point stands at 200.01.

Our preference

The upside prevails as long as 200.01 is support.

Alternative scenario

The downside breakout of 200.01 would call for 199.27 and 198.84.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 200.39 and 200.22).

Supports and resistances

202.89 **

202.45 *

202.01 **

201.57

200.68 last

200.30

200.01 **

199.27 *

198.84 **

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