USD/JPY may fall 77 - 111 pips

Our pivot point is at 156.31.

Our preference

The downside prevails as long as 156.31 is resistance.

Alternative scenario

Above 156.31, look for 156.88 and 157.22.

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 is trading under both its 20 and 50 period moving average (respectively at 156.57 and 156.92).

Supports and resistances

157.22 **

156.88 *

156.31 **

156.09

155.84 last

155.07

154.73 **

154.39 *

154.05 **

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