FX.co ★ Technical analysis and trading recommendations on USD against CAD & YEN for March 06, 2015

USD/CAD

In the week ending February 28, the flash estimate for seasonally adjusted initial claims was 320,000, an increase of 7,000 from the previous week's unrevised level of 313,000. A 4-week moving average was 304,750, an increase of 10,250 from the previous week's unrevised average of 294,500. Factory orders were printed in a negative note as well.

Upcoming events: Today, traders eye NFP data. Positive readings will influence the Federal Reserve thinking about an interest rate hike.

Technical view. Currently at the Asian session, the CAD is trading higher against the USD. The pair has been in a consolidation range for 22 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 1.2565. Bulls can challenge 1.2970, in case the prices close above 1.2700. 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. 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. For an intraday, we recommend selling 1.2470. Besides, we advise buying above 1.2500 with targets at 1.2520, 1.2540 and 1.2560. We can expect strong momentum above 1.2565.

Trade: selling below 1.2470, panic below 1.2350.

USD/JPY

The pair is trading at a three-week high. The pair has been facing strong resistance at 120.50. Ahead of the important jobs data, the US dollar is trading lower against the yen at the Asian session. The pair has a 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 119.80. It's a good sign for further room on the upswing. For an intraday view, the price has been facing strong resistance at 120.50. We advise buying above 120.50 with targets at 120.80 above this huge upswing looming for a new high. The pair has intraday support at 119.80. We advise you to sell only below 119.75 with targets at 119.50 and 119.40. Another upswing looms above 120.50. For an intraday view, until a h4 candle closes above 119.80, the long trade remains in play. The overall picture favours buying on dips. At yesterday's session, we recommended buying above 119.85 with targets at 119.95, 120.20, and 120.50. The pair made a high 120.39.

Buying sl 119.80 with targets at 120.00, 120.20, and 120.50.