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USDCAD and USDJPY Bullish with Resurgent US$ Strength


The US Dollar continues it renewed bullish tone across most major G10 currencies into early March. This has primarily been a reaction to hawkish statements from FOMC Members and anticipation of a rate hike at the March meeting.

USDJPY is pointing North, but still needs to overcome 115.63 for an intermediate-term bullish tone.

For USDCAD, US$ strength has seen a surge up through 1.3387 to negate intermediate-term bearish pressures, with risks of an intermediate-term bullish switch above 1.3598.

USDJPY

A solid advance as expected on Wednesday through resistance at 114.14/16, further building on the Monday rebound from firm support now seen at 113.53/44, aiming higher again Thursday.

In addition, our view is now that the intermediate-term risk within the range environment is for a bullish shift, but only signalled above 115.63.

For Today:

  • We see an upside bias through 114.75; break here aims for a key peak at 114.96, maybe up to 115.37 and even the critical 115.63 target.
  • But below 113.95 opens risk down to 113.53/44.

Short/ Intermediate-term Range Parameters: We see the range defined by 111.32 and 115.63.

Range Breakout Challenge

  • Downside: Below 111.32 sees risk lower for 110.00/109.76 and 108.51.
  • Upside: Above 115.63 aims higher for 118.65, 120.00/10 and 121.69.

Daily USDJPY Chart

usdjpy chart

USDCAD

A surge higher Wednesday through 1.3437 and 1.346, reinforcing the strong rally from late February (through an important resistance at 1.3387), keeping the risk for further gains Thursday.

Furthermore, whilst the recent push above 1.3387 shifted the intermediate term outlook from bearish to neutral, risk is now for a bullish switch above 1.3598.

For Today:

  • We see an upside bias for 1.3497; break here aims for 1.3558, maybe 1.3598.
  • But below 1.3445 opens risk down to 1.3397.

Short/ Intermediate-term Range Parameters: We see the range defined by 1.3598 and 1.2965.

Range Breakout Challenge

  • Upside: Above 1.3598 aims higher for 1.3837/59 and 1.4000/17.
  • Downside: Below 1.2965 sees risk lower for 1.2759 and 1.2457.

Daily USDCAD Chart

usdcad chart

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