Daily Currency Outlook: USD/CAD And USD/JPY : December 07,2018

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.3343; (P) 1.3394; (R1) 1.3433;

Intraday bias in USD/CAD remains on the upside for further rally. Sustained trading above 1.3385 resistance will confirm resumption of medium term up trend. Further rise should then be seen to 1.3685 fibonacci level. On the downside, though, break of 1.3160 support will indicate rejection by 1.3385 resistance and turn near term outlook bearish.

USD/CAD

In the bigger picture, up trend from 1.2061 (2017 low) is still in progress and decisive break of 1.3385 will pave the way to 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685. In case correction from 1.3382 extend with another falling leg, downside should be contained by 50% retracement of 1.2061 to 1.3385 at 1.2723 to bring rebound.

USD/CAD

USD/JPY Daily Outlook

Daily Pivots: (S1) 112.19; (P) 112.71; (R1) 113.19;

USD/JPY breached 112.30 but quickly recovered. For now, deeper decline is still expected as long as 113.24 minor resistance holds. Further fall should be seen to 111.37 and possibly below. But still, price actions from 114.54 are seen as a consolidation pattern. Hence, even in case of deep decline, downside should be contained by 38.2% retracement of 104.62 to 114.54 at 110.75 to bring rebound. Larger rise from 104.62 is expected to resume later. On the upside, above 113.24 minor resistance will turn bias back to the upside for 114.03 resistance.

In the bigger picture, corrective fall from 118.65 (2016 high) should have completed with three waves down to 104.62. Decisive break of 114.73 resistance will likely resume whole rally from 98.97 (2016 low) to 100% projection of 98.97 to 118.65 from 104.62 at 124.30, which is reasonably close to 125.85 (2015 high). This will stay as the preferred case as long as 109.76 support holds. However, decisive break of 109.76 will dampen this bullish view and turns outlook mixed again.

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