US Dollar Negative Versus JPY and CAD, After US Employment Report


  • 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.

See more current technical analyses

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


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.