Daily Currency Outlook: USD/CHF And USD/JPY : November 07,2018

USD/CHF Daily Outlook

Daily Pivots: (S1) 1.0012; (P) 1.0034; (R1) 1.0048;

At this point USDCHF remains bounded in range of 0.9968/1.0094 and intraday bias stays neutral. On the downside, break of 0.9968 will extend the correction from 1.0094 short term top towards 0.9848 support next. On the upside, decisive break of 1.0094 as well as 1.0067 key resistance will confirm resumption of larger rise from 0.9186 and should target 1.0342 key resistance next.


In the bigger picture, the pullback from 1.0067 has completed at 0.9541 already. And rise from 0.9186 is likely resuming. Firm break of 1.0067 will pave the way to retest 1.0342 key resistance. We’d be cautious on strong resistance from there to limit upside to bring another medium term fall to extend long term range trading. However, firm break of 0.9848 near term resistance will dampen this view and bring deeper decline back to 0.9541 support and possibly below.


USD/JPY Daily Outlook

Daily Pivots: (S1) 113.19; (P) 113.36; (R1) 113.62;

With 112.56 minor support intact, intraday bias in USD/JPY stays on the upside. Current rebound fro 111.37 is still mildly in favor to extend to 114.54/73 key resistance zone. On the downside, break of 112.56 minor support will argue the the rebound has completed. And, in that case, the corrective pattern from 114.54 could have started the third leg for 111.37 support and possibly below.


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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