Technical Checks For USD/JPY, USD/CAD & CAD/JPY: 24.08.2017

USD/JPY

Although six-month old descending trend-line continue signaling USDJPY’s downside, the 108.50-40 horizontal-line seems confining the pair’s near-term downside and indicates brighter chances of its pullback to 109.80 before extending the recovery towards 110.20 TL resistance. Given the pair’s ability to surpass 110.20 on a daily closing basis, it becomes capable enough to aim for 111.00 round-figure but 100-day SMA level, near 111.15-20, may restrict its following advances. On the contrary, quote’s daily close below 108.40 may further strengthen the Bears in demanding 107.50 and the 106.95 supports. Incase if sellers continue dominating prices after 106.95, the 106.00 and the 105.50 are likely halts that can entertain traders.

USD/CAD

Contrast to USDJPY, the USDCAD has more room towards south before it can test the short-term descending trend-channel support, at 1.2480, breaking which can deflate the pair to revisit 1.2450 and the July-month low near 1.2410. Should sellers continue maintaining their pessimistic outlook for the pair and drags it below 1.2410, also clear 1.2400 mark, the 1.2300 can offer an intermediate stop during the southward trajectory in direction to 61.8% FE level of 1.2230. Meanwhile, the 1.2610 and the 1.2645, comprising channel-resistance, may limit the pair’s immediate upside, which if broken enables it to stretch the recovery to 1.2690. However, the 1.2760-80 region, comprising 50-day SMA becomes a tough resistance-zone for prices to cross which can open the door for their north-run to 1.2850-55.

CAD/JPY

With the CAD being comparatively stronger than JPY, the CADJPY currently heads to confront 87.30-40 horizontal-line, break of which could enable the pair’s rise to channel-resistances figure of 88.00. During the pair’s sustained trading above 88.00, the 88.30 and the 88.60-65 could offer small barriers ahead of pushing Bulls to expect 89.00 resistance-mark. Alternatively, the 86.90 and the 86.50-45, including channel-support, can be guessed as stops if the pair reverses from present levels. Though, break of 86.45 can magnify the pair’s weakness by fetching it to the 86.00 and the 85.30 supports.

Cheers and Safe Trading,
Anil Panchal