CAD/JPY may rise to 120.55 - 121.76

Our pivot point stands at 116.31.

Our preference

The upside prevails as long as 116.31 is support.

Alternative scenario

The downside breakout of 116.31 would call for 114.28 and 113.08.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (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 115.90 and 114.54).

Supports and resistances

124.17 **

122.97 *

121.76 **

120.55

118.02 last

117.10

116.31 **

114.28 *

113.08 **

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