CNH/JPY may fall 11 - 16 pips

Our pivot point stands at 21.50.

Our preference

The downside prevails as long as 21.50 is resistance.

Alternative scenario

Above 21.50, look for 21.58 and 21.63.

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 stands below its 20 and 50 period moving average (respectively at 21.51 and 21.54).

Supports and resistances

21.63 **

21.58 *

21.50 **

21.46

21.41 last

21.30

21.25 **

21.20 *

21.15 **

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