CAD/JPY may fall 67 - 97 pips

Our pivot point stands at 113.68.

Our preference

The downside prevails as long as 113.68 is resistance.

Alternative scenario

The upside breakout of 113.68, would call for 114.18 and 114.48.

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 113.69 and 113.94).

Supports and resistances

114.48 **

114.18 *

113.68 **

113.48

113.28 last

112.61

112.31 **

112.01 *

111.71 **

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