USDJPY sustains intermediate-term bull bias, as USDCAD shifts bearish

*Originally published on 15/06/2021

• In our last article here on USDJPY and USDCAD from 9^th July we highlighted a positive tone for the US Dollar versus the Japanese Yen, but negative risks versus the Canadian Dollar.
• USDJPY has seen a correction lower, but whilst holding above the 110.25 level we still maintain an intermediate-term bullish view.
• For USDCAD, however, we warned of a potentially more negative tone and the surrender of the key 1.3063/61 area shifted the intermediate-term outlook to bearish.

USDJPY

Immediate upside bias whilst above new 110.57 support

A solid Friday consolidation, after Thursday’s probe below the notable 110.74/68 support area and then rebound from new support at 110.57, and whilst holding here to keep risks higher Monday.

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

For Today:

• We see a rebound bias higher for 111.54 and 111.85/90; break here maybe aims for 112.55/60.
• But below 110.57 opens risk down to key 110.28/25.

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:

4 Hour Chart

USDCAD

Risks still lower

A setback Friday, dismissing Thursday’s rebound effort, and whilst capped by 1.3135 resistance we still see negative pressures from the latter July selloff through the key 1.3063/61area (that completed a significant intermediate-term topping pattern) to keep risks lower Monday.

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

For Today:

• Whilst below 1.3135 we see a downside bias for 1.3020; break here quickly aims for 1.3000, maybe 1.2945.
• But above 1.3135 opens risk up to 1.3191.

 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:

4 Hour Chart

Forex Fraud Analyst Team

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