CNH/JPY may rise 13 - 20 pips

Our pivot point stands at 20.97.

Our preference

The upside prevails as long as 20.97 is support.

Alternative scenario

The downside breakout of 20.97 would call for 20.86 and 20.79.

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 above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 21.04 and 21.02). Finally, the CNH/JPY is trading above its upper Bollinger band (standing at 21.07).

Supports and resistances

21.40 **

21.34 *

21.28 **

21.21

21.08 last

21.01

20.97 **

20.86 *

20.79 **

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