CAD/JPY may fall to 96.82 - 99.35

Our pivot point is at 109.38.

Our preference

The downside prevails as long as 109.38 is resistance.

Alternative scenario

Above 109.38, look for 113.70 and 116.27.

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 stands below its 20 and 50 period moving average (respectively at 113.84 and 114.41). Finally, the CAD/JPY is trading below its lower Bollinger band (standing at 105.68).

Supports and resistances

116.27 **

113.70 *

109.38 **

107.69

104.66 last

99.35

96.82 **

94.29 *

91.76 **

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