FX.co ★ Technical analysis and trading recommendations on USD against CAD & YEN for March 05, 2015

USD/CAD

Review. Today, the Bank of Canada announced that it is maintaining its target for the overnight rate at 3/4 per cent. The Bank Rate is correspondingly 1 per cent and the deposit rate is 1/2 per cent. Canadian economic growth in the fourth quarter of 2014 was consistent with the regulator’s expectations. The oil price shock had a modest early impact on aggregate demand, and a larger effect on income. The BoC still expects that most of the negative impact from lower oil prices will appear in the first half of 2015. US private sector employment increased by 212,000 jobs from January to February according to the February ADP National Employment Report.

Upcoming events. Today, traders eye US unemployment claims, NFP, factory orders, and Canada Ivey PMI.

Technical view.

As of now, at the Asian session the CAD is trading higher against the USD. The pair has been in a consolidation range for 21 sessions between 1.2350 and 1.2700. The weekly support is set at 1.2350 and monthly is at 1.2300. The weekly resistance is found between 1.2665 and 1.2700. Bulls can challenge 1.2970, in case the prices close above 1.2700. The intraday resistance is found between 1.2435 and 1.24755. The intraday support is seen at 1.2400 and 1.2380. On a weekly positional view, until the prices close above 1.2350, buying remains in play with targets at 1.2565, 1.2660, and 1.2680. The prices are closed and trading below hourly moving averages. On the h4 chart, prices took support from the ascending trend line. Overall, the picture favors buying on dips. In the near term, until the prices close below 1.2565, bears will try to drag below 1.2350 and 1.2290.

We recommend selling 1.2380 and panic will be triggered below 1.2350. Besides, we advise buying above 1.2440 with targets at 1.2470 and strong momentum above 1.2480.

Trade:

Selling below 1.2380, panic below 1.2350

Buying above 1.2440, strong momentum above 1.2470

USD/JPY
The pair is trading at a three-week high. At today's Asian sesssion, the pair was rejected from 61.8 fib level. The pair has minor resistance between 119.85 and 120.00.The pair has major multiple resistance zone between 120.50 and 120.80. The prices are making higher lows and higher highs on the h4 chart. Support has climbed from 118.20 to 118.60. It's a good sign for further room on the upswing. For an intraday view, the price has been facing strong resistance at 119.85. We advise buying above 119.85 with targets at 119.95, 120.20, and 120.50. The pair has intraday support at 119.40. We advise you to sell only below 119.30 with targets at 119.15 and 118.70. Another upswing looms above 120.50. For an intraday view, until a h4 candle closes above 119.30, the long trade remains in play. Ahead of US unemployment data, NFP, and factory orders data, the greenback is trading lower against the yen. The overall picture favours buying on dips.

Buying above 119.85, safe buying above 120.00.