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US Dollar Stays Bearish Versus the Yen and Euro

USDJPY Chart

  • The Dollar suffered significant losses on Wednesday 14th June after the release of CPI and Retail Sales data from the US.
  • For USDJPY, negative activity has reinforced the previous close of the April bullish gap, which has set up a more bearish trend in the intermediate term.
  • Recent USDCAD losses, driven by the anticipation of a more hawkish stance from the Bank of Canada, point to a deeper correction threat into June.

Read more technical forex analyses

USDJPY – Downside threat

An aggressive sell-off ahead of the FOMC Meeting on Wednesday, down through supporter 109.52 and 109.08, reinforcing the intermediate-term bearish theme (setting back from the downtrend line from mid-May) and maintaining the threat lower into Thursday.

For Today:

l We see a downside bias for 108.85; break here aims for 108.69/66, Then down to support at 1.0828 and 1.0810

l But above 109.42 opens risk up towards 110.32 and maybe 110.81.

Intermediate-term Outlook – Downside Risks:

l We see a negative tone with the bearish threat to 108.10.

l Below here targets 107.19, 105.99 and 104.93.

What Changes This? Above 112.13 signals a neutral tone, only shifting positive above 114.37.

4 Hour USDJPY Chart

USDJPY Chart

USDCAD – Intermediate-term bear shift

Despite a minor rebound effort on Wednesday from just above modest support at 1.3160, whilst contained below 1.3294 we see bearish pressures from the recent plunge through 1.3219 key support, setting the risk lower for Thursday.

Furthermore, the push below 1.3219 signalled an intermediate-term bearish shift.

For Today:

l We see a downside bias for 1.3160; break here aims for 1.3100.

l But above 1.3294 targets 1.3342.

Intermediate-term Outlook – Downside Risks:

l We see a negative tone with the bearish threat to 1.3002/00 and 1.2965.

l Below here targets 1.2759 and 1.2676/51.

What Changes This? Above 1.3050 signals a neutral tone, only shifting positive above 1.3794.

4 Hour USDCAD Chart

USDCAD Chart

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