CAD/JPY may rise 54 - 79 pips

Our pivot point stands at 114.55.

Our preference

The upside prevails as long as 114.55 is support.

Alternative scenario

The downside breakout of 114.55 would call for 114.13 and 113.88.

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 114.80 and 114.58). Finally, the CAD/JPY is trading above its upper Bollinger band (standing at 114.97).

Supports and resistances

116.32 **

116.07 *

115.82 **

115.57

115.03 last

114.71

114.55 **

114.13 *

113.88 **

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