CAD/JPY may rise to 119.72 - 121.11

Our pivot point stands at 114.73.

Our preference

The upside prevails as long as 114.73 is support.

Alternative scenario

The downside breakout of 114.73 would call for 112.39 and 111.01.

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 trading above both its 20 and 50 period moving average (respectively at 114.82 and 113.70). Finally, the CAD/JPY has crossed above its upper Bollinger band (116.64).

Supports and resistances

123.90 **

122.50 *

121.11 **

119.72

116.87 last

115.64

114.73 **

112.39 *

111.01 **

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