USDJPY Upside Risks; USDCAD Holds Onto an Intermediate-Term Bear Trend


USDJPY Upside risks

A firm advance Wednesday-Thursday above the 112.26/29 resistance and better 112.50/54 resistances area, after the reversal of the October down trend line, with a rebound from new support seen at 111.98/96, to keep the bias higher for Thursday.

We see an intermediate-term shift from a bull to bear trend on the break below 112.53.

For Today:

  • We see an upside bias for 112.73 and 112.83; break here opens risk up towards key 113.28/39.
  • But below 111.98/96 aims at 59 and opens risk down to 111.35 and 111.09/01.

Intermediate-term Outlook – Downside Risks: We see a downside risk for 110.36 and 110.00.

  • What Changes This? Above 113.39 shifts the outlook back to neutral; above 114.55 is needed for a bull theme.

Resistance and Support:

112.42 112.50/54* 112.83 113.28/39** 113.82**
111.98/96* 111.59* 111.35 111.09/01** 110.71

4 Hour USD JPY Chart



USDCAD Holding onto a negative bias

A firm rebound Wednesday, but whilst contained by resistances at 1.3072/82 we still see negative forces from Tuesday’s significant selloff (through 1.2952 and 1.2922 supports), AND last week’s setback from below 1.3082 (from 1.3072), to keep risks lower Thursday.

We see an intermediate-term bearish theme.

For Today:

  • We see a downside bias for 1.2979; break here aims for 11.2912.
  • But above 1.2999 targets 1.3052 and maybe aims for 1.3072/84 (and possibly opens risk up to 1.3131).

Intermediate-term Outlook – Downside Risks: Whilst below 1.3226 we see a downside risk for 1.2725.

  • Lower targets would be 1.2536, 1.2250 and 1.2062/00
  • What Changes This? Above 1.3226 shifts the intermediate-term outlook straight bullish.

Resistance and Support:

1.3052* 1.3072/82** 1.3131 1.3198* 1.3226***
1.2979 1.2912** 1.2885* 1.2853* 1.2810

4 Hour USD CAD 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.