USD/JPY May See 110.00, USD/CAD 1.1200 Over Coming Weeks
- USDCAD breakout, inv H&S begins above 1.1100.
The US Dollar has mainly benefited against the European currencies the past several weeks - it may be time for gains to develop elsewhere.
The most recent leg of the USDJPY breakout from mid-August has extended through the 2014 highs, pressing a six-year high in the pair now that the triangle breakout is under way. The 'flag pole' of the recent triangle/pennant measured from the breakout points to a move towards ¥110.00, as would a doubling of the range that governed price in 2014 until this week.
USDCAD Daily Chart - November 2013 to Present
Another USD-pair that hasn't been charging ahead to the tune of EURUSD or GBPUSD has been USDCAD. After a strong rally in early-July, the pair has more or less settled into a 180-pip range for the past six weeks.
USDCAD's technical picture seems clearer than that of USDJPY, at least for a bullish resolution. The bullish falling wedge we've been working off of, which calls for a move back to C$1.1278, has been buttressed by what looks to be an inverse head & shoulders formation that points to C$1.1300.
See the above video for technical considerations in the USDOLLAR Index, USDCAD, and USDJPY, and click the link below for a review of EURUSD and GBPUSD from Monday.
--- Written by Christopher Vecchio, Currency Strategist
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