Analysis of USD AGAINST CAD & JPY
The stronger US data raises hope for the soonest interest rates hikes. The greenback is painting a better bull picture against CAD & Yen. At yesterday’s session, the pair manage to break above 1.2700, but effect gone wasted. Today at the Asian session, the USD is trading higher against the CAD. The parallel resistance seems at 1.2700. The pair has been in a consolidation range for 25 sessions between 1.2350 and 1.2700 giving a possible upside breakout today. The weekly support is set at 1.2350 and monthly is at 1.2300. The weekly resistance is found at 1.2700. Bulls can challenge 1.2970, in case the prices close above 1.2700. The intraday support is seen at 1.2670 and 1.2600. As we recommended earlier, on a weekly positional view, until the prices close above 1.2350, buying remains in play with targets at 1.2565, 1.2660, and 1.2680. All the targets met. Overall, the picture favors buying on dips. For an intraday, we advise buying with targets at 1.2660 and 1.2690. We can expect strong upswing looms above 1.2700.
Trade: we remain in buying.
Japan’s core machinery orders again disappointed with a decease by 1.7% from a 8.3% uptick. The pair managed to breach a previous high, but was unable to hold its gains. We have been recommending buying on every dip. Now, we are revising the targets at 124, 125.00, and 125.75. The prices are making higher lows and higher highs on the h4 chart. Support has climbed from 118.20 to 119.80. It’s a good sign for further room on the upswing. If the price closes above 121.85 on a weekly basis, we can see 128.00 as well. At Friday’s session, we advised buying sl 119.80 with targets at 120.00, 120.20, and 120.50. Yesterday, we extended our targets to 121.50 and 121.80. All the targets met. It’s a one side move all the way to new highs. The pair has intraday support at 120.80. Another upswing looms above 122.0. Until a h4 candle closes above 119.80, the long trade remains in play. The overall picture favours buying on dips.
Trade: we remain buyers.
The material has been provided by InstaForex Company – www.instaforex.com