CAD/JPY may fall 58 - 87 pips

Our pivot point stands at 114.02.

Our preference

The downside prevails as long as 114.02 is resistance.

Alternative scenario

The upside breakout of 114.02, would call for 114.49 and 114.77.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 114.39 and 114.57). Finally, the CAD/JPY is trading below its lower Bollinger band (standing at 113.58).

Supports and resistances

114.77 **

114.49 *

114.02 **

113.83

113.47 last

112.89

112.60 **

112.32 *

112.04 **

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