USD/JPY hit the next target of 115.65/75 with a high for the day exactly here and a minor negative candle on the daily chart which increases the chances of a right shoulder forming here. Prices have headed lower as expected to the 114.60/55 target.
EUR/JPY shorts at strong resistance at 129.50/60 worked with a high for the day here and a potential 60 pip profit on the side to minor support at 129.00/128.90—a low for the day exactly here.
CAD/JPY remains very volatile, making it difficult to hold a trade for more than a few hours. Up one day, down the next day in the 7 day sideways trend. The key level today does appear to be 9040/30 as stated yesterday.
Holding above here is positive, holding below is negative for the outlook.
Today's Analysis
USD/JPY reversed from the next target of 115.65/75 as we watch for a right shoulder to form. If you sold the bounce to first resistance at 115.60/70 you are doing well already as we hit targets of 114.85/80 and 114.60/55, perhaps as far as 114.35/30 today. First resistance at 115.15/20, with further resistance at 115.60/70 of course.
EUR/JPY meets strong resistance again at 129.50/60. Shorts need stops above 129.70. A break higher is a buy signal targeting 129.90/95 then 130.25/35. Minor support again at 129.00/128.90. A break lower targets 128.65/60 before a retest of 128.30/20.
CAD/JPY beat first resistance at 9030/40 to hit the next target of 9080/90 with a high for the day here again yesterday, but the pair are difficult to read. Above here look for 9110/15. A break higher targets 9140/50. Minor support at 9040/30. Further losses can retest 8970/60. A break lower can target the 200 day moving average at 8915/10.
EUR/USD And USD/CAD
EUR/USD beat strong resistance at 1.1205/10 and was expected to target strong resistance at 1.1255/65—this target was hit and is holding as I write. However a break above 1.1280 today is a buy signal.
USD/CAD we wrote: should meet very strong support at 1.2665/55. Longs need stops below 1.2645. A low for the day exactly at 1.2665/55 yesterday and a potential 60 pip profit on the bounce to minor resistance at 1.2710/20 with a high for the day exactly here. These 2 levels marked the low and the high for the day.
Analysis
EUR/USD hit the next target and strong resistance at 1.1255/65 which is still holding today. Shorts need stops above 1.1275. A break above 1.1280 is a buy signal targeting 1.1300/10, perhaps as far as 1.1340/50. Shorts at strong resistance at 1.1255/65 target 1.1210/00. If we continue lower look for minor support at 1.1180/70.
USD/CAD held very strong support at 1.2665/55. Longs need stops below 1.2645. A break lower however targets 1.2615/05. Minor resistance at 1.2710/20 held the bounce yesterday but above here can target 1.2750/60, perhaps as far as 1.2780/90
