CAD/JPY may rise 64 - 96 pips

Our pivot point is at 109.36.

Our preference

The upside prevails as long as 109.36 is support.

Alternative scenario

The downside breakout of 109.36 would call for 108.82 and 108.51.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (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 109.47 and 109.27).

Supports and resistances

111.42 **

111.10 *

110.78 **

110.46

109.82 last

109.57

109.36 **

108.82 *

108.51 **

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