USDJPY: Weakens, Closing In On The 75.92 Level.
USDJPY: With continued bearish threats seen, further weakness is expected to shape up towards its 2011 low at 75.92.
A decisive clearance of that level will eventually resume its long term downtrend towards the 74.00 level and then the 73.00 level, all representing its psycho levels.
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On the upside, USDJPY will have to break and close above the 80.19 level traded on Aug 04’2011 to end its present bearishness and create scope for more gains towards the 81.47 level, its July 08’2011 high.
Further resistance lies at the 82.21 level and then the 83.27 level, its April 18’2011 high.
USDCAD: Bearish Threat Seen Within Consolidation Zone
USDCAD: Although USDCAD is now vulnerable to the downside on consolidation, as long as it continues to hold above the 0.9777 level, our bias points to the upside.
The caveat is that a loss of that level will call for a deeper correction towards its July 18’2011 high followed by the 0.9404 level with a violation of there turning threat towards the 0.9300 level.
Its daily RSI is bearish and pointing lower supporting this view. However, above the 0.9777 level will create scope for a move higher towards the 1.0008 level, its Aug’2011 high.
A clearance of this level will set the stage for further strength towards the 1.0056 level, its Jan’2011 high.
Further out, on price extension we may see USDCAD targeting the 1.0207 level, its Dec 20’2011 high.Get the 5 most predictable currency pairs