The poor NFP print of 142K last Friday put a brief stop to the USD’s recently dominating gains across the board. The short-lived “consolidation” did not create any meaningful correction and the USD/JPY, USD/CAD are both in bullish continuation mode. Let’s take a look at their charts.
Last Friday, the USD/JPY paused at 105.70, and retreated about 95 pips after the NFP-reaction. However, it did stay above a previous support pivot at 104.75. A break above 105.70 revives the bullish mode with upside toward the 200-month simple moving average and a support/resistance pivot area around 106.50-106.65. The USD/CAD is trading under August’s consolidation, which is a possible price top. However, price action is threatening this “price top” as USD/CAD fended off a bearish attempt.It looks poised to rally toward the 1.10 handle, with upside toward the 1.1050 highs from April.
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