The U.S. Dollar made a slight recovery as we move to Tuesday afternoon. However, signals are still mixed looking to buy into USDJPY, but at the same time still remains down beat over on the USDCAD pair.
I made an entry into USDJPY earlier. EURJPY paid off better than my current position. The Yen remains relatively bearish across all pairs sending EURJPY up a few ticks to hit my take profit.
Consistently buying into this pair. I expect a similar with USDJPY as well. It already tested a support zone for the second time and seems to be holding up.
This support zone stretches out back to June 3 of this year. It was shortly tested the next day followed by the Non-Farm Payrolls. This pair quickly sold off with a few factors including Obama’s strong dollar claim, which he is in absolute denial. After the price entered this zone for a second time, it is safe to consider the end of the selling pressure.
USDCAD seems to remain the exception as the sell off only seems to be slowing down now. Buying hasn’t fully picked up with this pair even though the 6-hour close is nearing a doji. This indecision is strongly suggests a reversal as price rests just at the zone of the origin of a historical buying pressure.
The Canadian Dollar temporarily remains stronger due to a surprise in the building permits beating the consensus of 3.4% at 11.6% actual. The moving average crossover suggests a trend change, but this is just the very first indication to be aware of.