USD/JPY
Yellen suggests the first rate hike may not happen before the second half of the year. US dollar is trading higher against most major currencies. The pair moves higher at 119.86, but end of the day erased most of its gains. Today at the early Asian session, the pair opened on a bearish note. The US consumer confidence index declined in February after increasing in January. The Index now stands at 96.4, down from 103.8 in January. According to Lynn Franco, Director of Economic Indicators at The Conference Board: “After a large gain in January, consumer confidence retreated in February, but still remains at pre-recession levels (September 2007, Index, 99.5)."
The prices have been consolidating in a range between 115.50 and 120.80 for 10 weeks. The pair has weekly resistance at 120.80. The prices broke the five-day trend line and previous swing low. The pair has intraday support between 118.50 and 118.30. Until the pair holds and closes above 118.20, we recommend bullish views. We advise you to sell only below 118.20 with the targets at 118.00 and 117.60. The intraday resistance is at 119.05. We recommend buying above 119.10 with the targets at 119.50, 120.00, and 120.50. Another upswing looms above 120.50. Until the cross closes above 118.20, the long trade remains in play.
Buying above 119.10
Selling below 118.20
USD/CAD
The Canadian currency rose 0.70% against the US dollar at yesterday's session. After the testimony by Janet Yellen and Stephen Poloz, the pair fell sharply. Sellers commanded at yesterday's session. The prices gave an upside breakout from the descending triangle, but it proves a false breakout. The BoC's Governor Poloz comments supported the CAD, ending a four-day losing streak. The Governor discussed the evolution of the central bank's policy and the need to promote both the national currency's value and financial stability. The sudden fall in oil prices forced the loonie to dive. The Governor said, “We need to take account of a wider range of economic and financial consequences while targeting low inflation."
Technical view
At the early Asian session, the CAD is trading higher against the US dollar. The intra week resistance is seen at 1.2700. Bulls can challenge 1.2970, in case the prices are closed above 1.2700. The intraweek support is set at 1.2350. If the prices break below 1.2420, bears can challenge 1.2380 and 1.2350. The intraday resistance is found at 1.2500 and 1.2550. We recommend fresh buying above 1.2500 with the targets at 1.2540, 1.2560, and 1.2580. The intraday support is seen at 1.2450 and 1.2420. If the price comes next to 1.2450, buy with sl 1.2420 with the target at 1.2500 and 1.2530.