- A notable US Dollar setback after the US Employment report on Friday 2nd June against most G10 currencies.
- For USDJPY, the break below 110.46 sets a negative theme within a broader range environment into this week.
- For USDCAD, despite the weakness in the oil price the immediate risk is lower, again within a broader non-trend range.
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USDJPY – Bearish post US Employment report
A bearish breakout attempt on Friday after the US Employment report release from the consolidation theme that has dominated since mid-May; the plunge through 110.46 reinforcing the previous break below the 110.83//80 support area, setting risk lower for Monday.
Furthermore, we still see early June risk for a break down through the bull gap at 109.57-45, which would see an intermediate-term shift back to bearish.
For Today:
l We see a downside bias for the 110.21/15 support area and psychological 110.00; break here aims for the key bull gap at 109.57-45.
l But above 110.95 opens risk up to the 111.71/80 area.
Intermediate-term Range Parameters: We see the range defined by the bottom of the bull gap at 109.45 and 115.50/63 peaks.
Range Breakout Challenge
l Upside: Above 115.50/63 aims higher for 118.65, 120.00/10 and 121.69.
l Downside: Below 109.45 sees risk lower for 108.10, 107.19, 105.99 and 104.93.
4 Hour USDJPY Chart
USDCAD – Negative tone
A setback from within the 1.3540/55 resistance area on Friday after the release of the US Employment data, shifting the risk to the downside into Monday
The latter May push through 1.3406 shifted the intermediate-term outlook to neutral.
For Today:
l We see a downside bias for 1.3431; break here aims for 1.3383/74.
l But above the 1.3540/55 resistance area opens risk up to 1.3599.
Intermediate-term Range Parameters: We see the range defined by 1.3219 and 1.3794.
Range Breakout Challenge
l Upside: Above 1.3794 aims higher for 1.3837/59 and 1.4000/17.
l Downside: Below 1.3219 sees risk lower for 1.2965.
4 Hour USDCAD Chart
