Daily Currency Outlook: USD/JPY And USD/CAD : June 20,2018
ActionForex | Jun 20, 2018 07:47AM ET
Daily Pivots: (S1) 109.54; (P) 110.07; (R1) 110.60;
USD/JPY recovered after hitting 109.54 and intraday bias is turned neutral first. Outlook remains unchanged. Price actions from1 111.39 are viewed as a corrective pattern, with fall from 110.89 as the third leg. Below 109.54 will target 108.10 and possibly below. But, we’d expect strong support from 61.8% retracement of 104.62 to 111.39 at 107.20 to contain downside and bring rebound. On the upside, though, above 110.89 will bring retest of 111.39 instead.
In the bigger picture, at this point, we’re slightly favoring the case that corrective decline from 118.65 (2016 high) has completed with three waves down to 104.62. Above 111.39 will affirm this view and target 114.73 for confirmation. However, it should be noted that USD/JPY is bounded in medium term falling channel from 118.65 (2016 high). Sustained break of 61.8% retracement of 104.62 to 111.39 at 107.20 will likely resume the fall from 118.65 through 104.62 low.
Daily Pivots: (S1) 1.3219; (P) 1.3258; (R1) 1.3324;
Intraday bias in USD/CAD remains on the upside. Current rally is expected to target 100% projection of 1.2246 to 1.3124 from 1.2526 at 1.3404 next. On the downside, below 1.3207 minor support will turn intraday bias neutral and bring consolidation first, before staging another rise.
In the bigger picture, current development solidify the view of bullish trend reversal. That is fall from 1.4689 (2015 high) has completed at 1.2061, ahead of 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048. Further rally should be seen for 61.8% retracement of 1.4689 to 1.2061 at 1.3685 and above. This will now be the preferred case as long as 1.2526 support holds, even in case of deep pull back.
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