USD/JPY Daily Outlook
Daily Pivots: (S1) 110.09; (P) 110.38; (R1) 110.80;
USD/JPY rises further today but it’s still staying below 110.89 resistance. Intraday bias remains neutral for the moment. On the upside, break of 110.89 will resume the rise from 108.10 and target 111.39. Firm break there will resume the rally from 104.62 and target 114.73 key resistance. On the downside, below 109.36 will extend the consolidation from 111.39 with another decline. But we’d expect strong support from 61.8% retracement of 104.62 to 111.39 at 107.20 to contain downside and bring rebound.
In the bigger picture, at this point, we’re slightly favoring the case that corrective decline from 118.65 (2016 high) has completed with three waves down to 104.62. Above 111.39 will affirm this view and target 114.73 for confirmation. However, it should be noted that USD/JPY is bounded in medium term falling channel from 118.65 (2016 high). Sustained break of 61.8% retracement of 104.62 to 111.39 at 107.20 will likely resume the fall from 118.65 through 104.62 low.
USD/CAD Daily Outlook
Daily Pivots: (S1) 1.3211; (P) 1.3282; (R1) 1.3324;
USD/CAD’s pull back from 1.3385 extends lower today and intraday bias is mildly on the downside. Fro now, we’d expect strong support from 1.3067 to contain downside to bring rise resumption. On the upside, firm break of 1.3385 will resume recent rally for 1.3685 medium term fibonacci level next.
In the bigger picture, current development solidify the view of bullish trend reversal. That is fall from 1.4689 (2015 high) has completed at 1.2061, ahead of 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048. Further rally should be seen for 61.8% retracement of 1.4689 to 1.2061 at 1.3685 and above. This will now be the preferred case as long as 1.2916 resistance turned support holds, even in case of deep pull back.
