FX.co ★ Technical analysis and trading recommendation for USD against CAD & YEN for April 10, 2015

In the week ending April 4, the advance figure for seasonally adjusted initial claims was 281,000, printed an increase by 14,000 from the previous week's revised level. The previous week's level was revised down by 1,000 from 268,000 to 267,000.The 4-week moving average was 282,250, printed a decrease of 3,000 from the previous week's revised average. This is the lowest level for this average since June 3, 2000 when it was 281,500. The previous week's average was revised down by 250 from 285,500 to 285,250.

The US dollar rebounded from the double bottom. It is likely to create the double bottom around 96.20. At yesterday's session, we recommended buying above 98.30 with targets at 98.50 and 98.64. Bulls can challenge 99.80 in a day or two. The USDX made a high at 99.18. Its another stellar move. The USD index has been moving higher for the fourth consecutive day. The resistance is seen at 99.46.

USD/JPY

We repeatedly advised buying on every dip with sl 117.50. The pair made a low at 118.30 changed its direction. Now, a daily close above 120.50 leads to 122.00. Until the price closes above 119.40, a target is likely to be at 122.00. The pair has been consolidating at higher levels, it's a good sign to give another upside breakout towards 120.75, 121.00, and 122.00.The intra-week trend favors buying with sl 119.80 and positional buyers can use sl 119.00 waiting for 121.50 and 122.00. Multiple intervals hourly and four-hour chart favours buyers. Until the pair closes above 119.80, trend favors long positions. Intraday support is found at 120.30. Higher highs and higher lows formation takes place in the hourly and four-hour chart.

USD/CAD

Canadian municipalities issued building permits worth $6.1 billion in February, edging down 0.9% from the previous month. This was the second consecutive monthly decline. The New Housing Price Index (NHPI) rose 0.2% in February, following a 0.1% decline in January.

The pair has been expanding its higher journey for 3 consecutive days. Today, the pair opened on a bullish bias. At yesterday's session, the pair breached the 20Dsma but unable to close above that. We recommended buying at 1.2400 with sl 1.2350. The pair made a low at 1.2388 and changed its direction made a high at 1.2614. We can expect some more steam left with targets at 1.2630 and 1.2700. Today, traders eye on Canadian employment changes and unemployment rate. Both data can print positive readings.

Trade: We request traders to use another dip to buy near 1.2530.