CNH/JPY may rise 12 - 18 pips

Our pivot point is at 20.86.

Our preference

Look for a drop towards 20.86 before a bounce.

Alternative scenario

The downside breakout of 20.86 would call for 20.76 and 20.70.

Comment

The RSI is above 50. The MACD is negative and below its signal line. The penetration of 50 on the RSI should trigger further losses. Moreover, the pair is trading under its 20 period moving average (20.96) but above its 50 period moving average (20.96).

Supports and resistances

21.26 **

21.20 *

21.14 **

21.08

20.96 last

20.90

20.86 **

20.76 *

20.70 **

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