CAD/JPY may fall 71 - 101 pips

109.26 is our pivot point.

Our preference

The downside prevails as long as 109.26 is resistance.

Alternative scenario

Above 109.26, look for 109.77 and 110.07.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 109.92 and 110.57).

Supports and resistances

110.07 **

109.77 *

109.26 **

109.06

108.73 last

108.02

107.72 **

107.41 *

107.11 **

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