USD/JPY Daily Outlook
Daily Pivots: (S1) 109.84; (P) 110.15; (R1) 110.66;
Intraday bias in USD/JPY remains on the upside for the moment. Current rise from 104.62 is in progress for 61.8% retracement of 114.73 to 104.62 at 110.86 next. Firm break there will target medium term trend line resistance at 112.43. On the downside, below 109.14 support is needed to indicate short term topping. Otherwise, outlook will remain bullish in case of retreat.
In the bigger picture, corrective decline from 118.65 (2016 high) has completed with three waves down to 104.62. Rise from 104.62 is possibly resuming the up trend from 98.97 (2016 low). This will be the preferred case as long as 55 day EMA (now at 108.30) holds. Decisive break of 114.73 resistance will confirm our view and target 118.65 and above.
USD/CAD Daily Outlook
Daily Pivots: (S1) 1.2797; (P) 1.2864; (R1) 1.2943;
As noted before, the pull back from 1.2996 has completed at 1.2728 already. Intraday bias remains mildly on the upside for 1.2996 resistance first. Break there will affirm our bullish view that rebound from 1.2061 low is still in progress. And in that case, further rise should be seen to retest 1.3124 key resistance. We’ll hold on to this bullish view as long as 1.2728 support holds.
In the bigger picture, current development suggests that rebound from 1.2061 has not completed yet. Focus is back on 38.2% retracement of 1.4689 to 1.2061 at 1.3065. Sustained trading above there will confirm medium term bullish reversal. That is, down trend from 1.4689 has completed at 1.2061 already. In that case, next target will be 61.8% retracement at 1.3685. However, break of 1.2526 support will dampen this bullish view again. And, focus will be back on 1.2061 key support level, which is close to 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048
