USDJPY, USDCAD chart setups for the week ahead

Following Bank of Japan’s Governor Kuroda announcement, Japan’s economy continues to with inflation hovering around 0%. BOJ will maintain QE with yield curve control in order to bring inflation back to the 2% target.

Nevertheless, U.S. Dollar pairs continued to remain upbeat re-inforcing expectations for a December rate hike. The Dollar Index reached its highest point since March and is expected to continue rallying with the current market sentiment.

U.S. Dollar Index 1-Day

The next key level to watch out for on the Dollar Index is at the 98.45 mark. Although I do not like to do technical setups on indices that track a list of underlying movements, I do consider this as more room for the Dollar to rally.


As of market open, the USDJPY is looking to break above the 104~ price level after consolidating for the past three sessions. Switching over the a lower time frame, I consider going long above the 104.40~ level.


The 104.35~ to 104.40~ price zone marks a series of offers putting downward pressure at this zone. If price is able to surpass this zone without any downward pressure, I would look to go long on this pair.


Recall, USDCAD broke out of our daily price level marked at 1.323~. My trade plan was if that price level sustained, we could expect a further rally. However, price reached the 1.33~ high, but failed to sustain twice. I currently remain bearish as bidding seems to have died off with no further higher fills and will be preparing for a short entry.


A Pip For Your Thought?

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s