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USDCAD and USDJPY Bear Trends Intact and Reinforced

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Despite a USD rebound versus many G10 currencies over the past week, USDCAD and USDJPY have maintained their bearish outlooks that have been evident since the US$ plunge after the Friday 3rd June US Employment report.

The reinforces bearish intermediate-term trend for both USDCAD and USDJPY into and through mid-June.

USDCAD

Despite a rebound Thursday-Friday (to probe above modest resistance at 1.2767), a stall ahead of 1.2804 maintains negative June pressures and more recently from the push below 1.2695 and 1.2667 support, to keep the bias lower Monday.

For Today:

  • We see a downside bias for 1.265751; break here aims for 1.2590 and 1.2507.
  • But above 1.2804 aims for 1.2839 and maybe 1.2881.

Short/ Intermediate-term Outlook – Downside Risks: A bearish shift in the intermediate-term outlook was signalled below 1.3360.

  • We see a negative tone with the bearish threat to 1.2304.
  • Below here targets 1.2127 and 1.2000.

What Changes This? Above 1.3218 signals a neutral tone, only shifting positive above 1.3296.

Daily USDCAD Chart

USDCAD Chart

USDJPY

A modest rebound effort Friday, but capped by a firm barrier at 107.40 (from 107.26) to leave negative pressures from the setback last week to probe into the 106.42/22 support area from May and from the sell off on Friday 3rd June (post-US Employment report), to keep a negative bias Monday.

For Today:

  • We see a downside bias for 106.53 and 106.24/22; break here aims for the cycle low at 105.51 and maybe key long-term support from 2014 at 105.20.
  • But above 107.26 and 107.40 aims for 107.90, which we would look to try to cap.

Short/ Intermediate-term Outlook – Downside Risks: The previous plunge below 109.22 support shifted the intermediate-term outlook to bearish.

  • Whilst below 111.89 we see a negative tone with the bearish threat to 105.51 and 105.20.
  • Below here aims for long term targets at 102.20, 100.75/71 and maybe even 100.00.

What Changes This? Above 111.89 signals a neutral tone, only shifting positive above 113.80.

Daily USDJPY Chart

 

USDJPY Chart