USDCAD Shifts Bearish, as USDJPY Holds onto a Positive Bias

usdcad chart

  • In out prior report looking at USDCAD and USDJPY on 25th July, we highlighted a still positive intermediate-term tone for the US Dollar against both the Canadian Dollar and Japanese Yen.
  • The USDCAD currency selloff in latter July shifted the intermediate-term bullish outlook to negative with the surrender of 1.3063/61, leaving the threat for further losses into August.
  • For the USDJPY Forex rate, the late July setback has questioned the intermediate-term bull theme, but whilst above 110.25 we still see a bullish outlook for at least early August.

USDCAD Bear risks

A probe to a new bear move low Friday after the Thursday prod higher was capped by initial 1.3053 resistance, therefore, sustaining bear pressures from the late July selloff through the prior correction low at 1.3020, to keep risks lower Monday.

The surrender of the key 1.3063/61area shifted the intermediate-term outlook to bearish.

For Today:

  • We see a downside bias for 1.2964; break here quickly aims for 1.2945, maybe 1.2917 and even 1.2891.
  • But above 1.3053 aims at 1.3096 and maybe opens risk up to 1.3135.

 Intermediate-term Outlook – Downside Risks: 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 outlook back to neutral; above 1.3386 is needed for a bull theme.

Resistance and Support:

1.3053 1.3096* 1.3135* 1.3191** 1.3247*
1.2964 1.2945** 1.2917* 1.2891 1.2855/49**

4 Hour USDCAD Chart

 usdcad chart


USDJPY Downside correction bias

Another dip lower Friday but this tine through our initial 111.39 support, to for now ease upside forces from the strong, late July rally from above support at 110.57 (off of 110.73), to shift the bias for a modest correction lower Monday.

The early July push above 111.08 shifted the intermediate-term view to bullish.

For Today:

  • We see a correction bias for 110.73, which we would look to try to hold. Below target 110.57, which we would again look to try to hold.
  • Above 111.60 target 111.88 and maybe 112.15.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 113.39/55.

  • Higher targets would be 114.73, 115.50/63 and maybe towards 118.65.
  • What Changes This? Below 110.25 shifts the outlook back to neutral; only through 109.35 signals for a bear theme.

Resistance and Support:

111.60 111.88* 112.15** 112.55/60 113.14/18*
110.73* 110.57** 110.28/25*** 109.95* 109.65*

4 Hour USDJPY Chart

usdjpy chart

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.