CAD/JPY may rise 65 - 97 pips

Our pivot point stands at 109.79.

Our preference

The upside prevails as long as 109.79 is support.

Alternative scenario

The downside breakout of 109.79 would call for 109.26 and 108.94.

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 trading above both its 20 and 50 period moving average (respectively at 109.95 and 109.50).

Supports and resistances

112.03 **

111.71 *

111.39 **

111.07

110.42 last

110.01

109.79 **

109.26 *

108.94 **

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