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


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