fbpx

USDJPY and USDCAD Stay Bullish

USDCAD chart 2019-05-02

  • When we last reviewed USDJPY and USDCAD Forex rates here on 23rd April, we had bullish outlooks for both, which has been reinforced by subsequent price activity.
  • A generally more positive tone for the US Dollar in the wake of the FOMC decision and statement on Wednesday 1st May leaves both short- and intermediate-term risks towards the upside for early May for both the USDJPY and USDCAD currency pairs.

USDJPY

Bias switches higher post Fed decision

A rebound Wednesday after the Fed through modest resistance at 111.55, to reject a challenge to key 110.81 support from early April and ease the negative tone from the latter April plunge from 112.40 through the up trend line from mid-March, to switch the bias hgiher Thursday.

The mid-April prod above 112.14 was enough to shift the intermediate-term outlook to bullish.

For Today:

  • We see an upside bias for 111.66; break here aims for 112.03, maybe 112.40.
  • But below 111.02 opens risk down to key 110/81.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 113.71.

  • Higher targets would be 55 and 115.00.
  • What Changes This? Below 110.81 shifts the outlook back to neutral; through 109.66 is needed for a bear theme.

Resistance and Support:

111.55 112.03 112.40* 112.64* 113.07
111.09 110.81*** 110.51 110.00/109.99* 109.69/66***

4 Hour Chart

USDJPY Chart 2019-05-02

USDCAD

Risks flip back higher

A strong rebound Wednesday ahead of the Fed decision through resistance at 13419 to reject Wednesday’s selloff (through our 1.3431 and 1.3396 supports), to resume upside forces from the latter April push up through resistances (at 1.3469/74/88, 1.3446/49 and 1.3396/1.3403), to switch risks back higher for Thursday.

The early March surge through 1.3375 set an intermediate-term bull trend.

For Today:

  • We see an upside bias for 1.3461 and 1.3480; break here aims for 1.3521.
  • But below 1.3401 opens risk down to 1.3371.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 1.3665.

  • Higher targets would be 1.3794 and 1.4000.
  • What Changes This? Below 1.3246 shifts the outlook back to neutral; through 1.3110 is needed for a bear theme.

Resistance and Support:

1.3461 1.3480 1.3521* 1.3567 1.3618*
1.3401 1.3371* 1.3331 1.3270* 1.3246***

4 Hour Chart

USDCAD chart 2019-05-02

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