fbpx

USDCAD Still an Intermediate-Term Up Trend; USDJPY Set to Ease Bear Forces

usdcad

  • In our prior report here, we highlighted on the USDCAD resumptions of an intermediate-term bull trend after the bullish shift above 1.2944.
  • A slight shift back towards more of a “risk on” outlook for global asset classes has seen USDJPY attempt to rebound, after a shift from intermediate-term bullish to bearish into latter May.

 

USDCAD Upside risks

A Friday advance and despite an intraday setback we still see upside forces from Thursday’s surge back higher, sustaining bullish forces that produced a new recovery high above 1.2998/1.300, keeping risks higher for Monday.

The early May break above 1.2944 sets an intermediate-term bull trend.

For Today:

  • We see an upside bias for 1.3007; break here aims for 1.3047/55, maybe towards 1.3076.
  • But below 1.2932 opens risk down to 1.2889, possibly towards 1.2814.

 Intermediate-term Outlook – Upside Risks: We see an upside risk for 1.3125.

  • Higher targets would be 1.3347.
  • What Changes This? Below 1.2536 shifts the outlook straight to a bear trend.

Resistance and Support:

1.3007 1.3047/55* 1.3076 1.3125*** 1.3155
1.2932 1.2889* 1.2814** 1.2777 1.2738/25**

4 Hour USDCAD Chart

 usdcad

USDJPY Upside risks

As we had anticipated a strong recovery effort Friday through 109.11 and 109.47 resistances, building on the setbacks and rebounds seen Wednesday and Thursday, leaving a further recovery bias into Monday.

The late May surrender of 108.41 set the intermediate-term outlook to bearish, whilst below 109.83, BUT risk is growing for an intermediate-term shift back to neutral above here.

For Today:

  • We see an upside bias for 109.73, then quickly for key 109.83; above targets 110.33, possibilities towards 111.08
  • But below 109.14 aims for 108.37/32 and maybe targets 108.08.

Intermediate-term Outlook – Downside Risks: We see a downside risk for 106.85/59.

  • Lower targets would be 105.63 and maybe 104.54.
  • What Changes This? Above 109.83 shifts the outlook back to neutral; above 111.08 is needed for a bull theme.

Resistance and Support:

109.73* 109.83*** 110.33* 111.08*** 111.43**
109.14 108.37/32 108.08* 107.52 106.85*

4 Hour USDJPY Chart

usdjpy

Are you ready to trade?

Sign up with eToro Logo76% of CFD traders lose

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.


Popular Brokers