CAD/JPY may rise 79 - 117 pips

Our pivot point is at 106.83.

Our preference

The upside prevails as long as 106.83 is support.

Alternative scenario

Below 106.83, expect 106.20 and 105.83.

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 107.09 and 106.97).

Supports and resistances

109.31 **

108.93 *

108.56 **

108.18

107.39 last

107.08

106.83 **

106.20 *

105.83 **

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