CAD/JPY may fall 67 - 98 pips

Our pivot point stands at 108.28.

Our preference

The downside prevails as long as 108.28 is resistance.

Alternative scenario

Above 108.28, look for 108.81 and 109.12.

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 is trading under both its 20 and 50 period moving average (respectively at 108.22 and 108.42).

Supports and resistances

109.12 **

108.81 *

108.28 **

108.07

107.85 last

107.18

106.87 **

106.55 *

106.24 **

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