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USDJPY Bullish Shift Reinforced, as USDCAD Stays Bearish

usdjpy chart

  • Despite some further negative developments in the US-China trade war, global asset classes have broadly maintained a “risk on” bias, producing further US Dollar weakness and an even weaker Japanese Yen.
  • The USDJPY currency pair has reinforced the prior intermediate-term bullish shift above the key 112.15 resistance level, to aim still higher into October.
  • The USDCAD Forex rate, however, maintains the intermediate-term bearish theme into late September and likely on into early Q4.

 

USDJPY Bull trend extending

A push higher above 112.87 resistance after Monday’s rebound from above first 112.03 support and the September up trend line (as also seen last week), to reinforce the prior intermediate-term bull shift above 112.15, to keep risks higher Wednesday.

The mid-September push above here 112.15 set an intermediate-term bull trend.

For Today:

  • We see an upside bias for 112.98, then quickly to the key 113.14/18 cycle peaks, maybe for 113.39.
  • But below 112.26 targets 111.85 and quickly opens risk down to 111.64.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 113.14/18.

  • Higher targets would be 114.73, 115.63 and 118.65
  • What Changes This? Below 110.36 shifts the outlook back to neutral; through 109.74 is needed for a bear theme.

Resistance and Support:

112.98 113.14/18** 113.39 113.75 114.07
112.26 111.85 111.64** 111.35 111.09/01**

4 Hour USD/JPY Chart

 usdjpy chart

 

USDCAD Bear bias intact

Still a low-level consolidation Tuesday to sustain negative pressures from last Thursday’s probe below key support at 1.2883, building on the recent push below notable 1.2971/61 supports, keeping risks lower Wednesday.

We see an intermediate-term bearish theme.

For Today:

  • We see a downside bias for 1.2880, then for 1.2855 and maybe for the next key level at 1.2814.
  • But above 1.2977 opens risk to 1.3015 and maybe targets 1.3064/78.

Intermediate-term Outlook – Downside Risks: Whilst below 1.3290 we see a downside risk for 1.2814.

  • Lower targets would be 1.2725 and 1.2536
  • What Changes This? Above 1.3290 shifts the intermediate-term outlook straight bullish.

Resistance and Support:

1.2977 1.3015* 1.3064/78** 1.3131 1.3198*
1.2880 1.2855* 1.2814** 1.2779 1.2738*

4 Hour USD/CAD Chart

 usdcad chart

 

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.


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