CAD/JPY may fall 62 - 91 pips

Our pivot point stands at 110.58.

Our preference

The downside prevails as long as 110.58 is resistance.

Alternative scenario

Above 110.58, look for 111.06 and 111.35.

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 below its signal line and negative. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 110.61 and 111.21).

Supports and resistances

111.35 **

111.06 *

110.58 **

110.39

110.04 last

109.42

109.13 **

108.84 *

108.55 **

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