In Swissquote’s Tuesday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for USD/JPY and USD/CAD. To view and download the entire report, click here (PDF).
USD/JPY: Grinding higher?
• USD/JPY has broken the resistance at 109.46 (19/09/2014 high). However, given the major resistance at 110.66 (15/08/2008 high), monitor the hourly support at 109.19/109.13 (29/09/2014 low), as a break would suggest a weakening short-term buying interest. Another hourly support lies at 108.46 (24/09/2014 low).
• A long-term bullish bias is favoured as long as the key support 100.76 (04/02/2014 low) holds. The recent new highs confirm a strong underlying bullish trend. A break of the major resistance at 110.66 (15/08/2008 high, see also the 50% retracement from the 1998’s top) is eventually favoured. Another resistance can be found at 114.66 (27/12/2007 high).
USD/CAD: Pausing near the top of its rising channel
• USD/CAD is consolidating near the top of its rising channel. Hourly supports can be found at 1.1084 (intraday low) and 1.1053 (24/09/2014 low). An hourly resistance now lies at 1.1178 (29/09/2014 high). Further gradual strength towards the strong resistance at 1.1279 is favoured.
• In the longer term, the technical structure looks like a rounding bottom whose minimum upside potential is at 1.1725. However, a break of the support area implied by the long-term rising trendline and 1.0559 (29/11/2013 low) would invalidate this long-term bullish configuration.
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