USD/JPY Daily Outlook
Daily Pivots: (S1) 111.36; (P) 111.91; (R1) 112.43;
Intraday bias in USD/JPY remains on the downside for the moment. Current fall from 114.54 is in progress for 38.2% retracement of 104.62 to 114.54 at 110.75. As such fall is seen as part of medium term correction, we’ll look for bottoming signal above 109.76 key support. On the upside, break of 112.88 resistance will suggest that the fall has completed and turn bias back to the upside.
In the bigger picture, corrective fall from 118.65 (2016 high) should have completed with three waves down to 104.62. Decisive break of 114.73 resistance will likely resume whole rally from 98.97 (2016 low) to 100% projection of 98.97 to 118.65 from 104.62 at 124.30, which is reasonably close to 125.85 (2015 high). This will stay as the preferred case as long as 109.76 support holds. However, decisive break of 109.76 will dampen this bullish view and turns outlook mixed again.
USD/CAD Daily Outlook
Daily Pivots: (S1) 1.3064; (P) 1.3111; (R1) 1.3155;
Further rise is expected in USD/CAD as long as 1.2969 support holds. The choppy decline from 1.2285 should have completed 1.2781 already. Rise from 1.2781 should target 1.3225 resistance to confirm this bullish case, and pave the way to 1.3385 next. However, break of 1.2969 will mix up the outlook again and turn bias back to the downside.
In the bigger picture, current development revives the case that corrective fall from 1.3385 has completed at 1.2781 already. And whole up trend from 1.2061 (2016 low) is ready to resume. Break of 1.3385 will target 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685. This will now be the favored case as long as 1.2781 support holds.
