CAD/JPY may rise 60 - 88 pips

Our pivot point stands at 113.79.

Our preference

The upside prevails as long as 113.79 is support.

Alternative scenario

The downside breakout of 113.79 would call for 113.32 and 113.03.

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 positive and above its signal line. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 113.71 and 113.43).

Supports and resistances

115.64 **

115.36 *

115.07 **

114.79

114.19 last

113.98

113.79 **

113.32 *

113.03 **

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