CNH/JPY may fall 14 - 20 pips

Our pivot point stands at 20.99.

Our preference

The downside prevails as long as 20.99 is resistance.

Alternative scenario

Above 20.99, look for 21.09 and 21.15.

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 20.98 and 21.06).

Supports and resistances

21.15 **

21.09 *

20.99 **

20.95

20.91 last

20.77

20.71 **

20.65 *

20.59 **

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