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The USD/JPY is expected to make a bullish correction once price completes the wave 5 (green) at the Fibonacci targets. The expected wave pattern suggests that price will make a bullish ABC pattern within wave B (blue) before making a final swing down to complete the wave 2 (purple) correction.

The USD/JPY is now testing the support trend line (blue) and a bearish breakout could indicate the continuation for a final wave 5 (orange) of wave 5 (green). Price is expected to show a bullish bounce around the support zone of 107.25-107.50.

Pivot (invalidation): 54.00

Our preference Short positions below 54.00 with targets at 52.10 & 51.45 in extension.

Alternative scenario Above 54.00 look for further upside with 54.75 & 55.70 as targets.

Comment As Long as the resistance at 54.00 is not surpassed, the risk of the break below 52.10 remains high.

Pivot (invalidation): 14.6600

Our preference Long positions above 14.6600 with targets at 14.8300 & 14.8700 in extension.

Alternative scenario Below 14.6600 look for further downside with 14.6000 & 14.5500 as targets.

Comment A support base at 14.6600 has formed and has allowed for a temporary stabilisation.

Pivot (invalidation): 1318.00

Our preference Long positions above 1318.00 with targets at 1328.00 & 1333.00 in extension.

Alternative scenario Below 1318.00 look for further downside with 1312.50 & 1309.00 as targets.

Comment A support base at 1318.00 has formed and has allowed for a temporary stabilisation.

Pivot (invalidation): 2755.00

Our preference Short positions below 2755.00 with targets at 2723.50 & 2705.50 in extension.

Alternative scenario Above 2755.00 look for further upside with 2768.50 & 2781.65 as targets.

Comment The RSI advocates for further downside.

Pivot (invalidation): 11680.00

Our preference Long positions above 11680.00 with targets at 11830.00 & 11920.00 in extension.

Alternative scenario Below 11680.00 look for further downside with 11590.00 & 11490.00 as targets.

Comment The RSI is bullish and calls for further advance.

Daily Pivots: (S1) 1.3403; (P) 1.3473; (R1) 1.3511; More...

USD/CAD's decline from 1.3564 extends lower today. Break of 1.3429 support suggests that whole rise from 1.3357 has completed at 1.3564. More importantly, considering bearish divergence in 4 hour MACD, it's also the first sign of bearish reversal. Intraday bias is now back on the downside for retesting 1.3357 support next. Decisive break there will indicate completion of larger rise from 1.3068.

In the bigger picture, USD/CAD is staying well inside medium term rising channel (support at 1.3335). Thus, the up trend from 1.2061 (2017 low) should be in progress. On the upside, decisive break of 61.8% retracement of 1.4689 (2016 high) to 1.2061 at 1.3685 will pave the way to 78.6% retracement at 1.4127 next. This will remain the favored case as long as 1.3068 support holds. However, sustained break of the channel support will be the first sign of medium term reversal. Firm break of 1.3068 would confirm.

Pivot (invalidation): 5.8500

Our preference Short positions below 5.8500 with targets at 5.8190 & 5.8000 in extension.

Alternative scenario Above 5.8500 look for further upside with 5.8910 & 5.9200 as targets.

Comment The RSI lacks upward momentum.

Daily Pivots: (S1) 0.6942; (P) 0.6962; (R1) 0.6998; More...

Focus is now on 0.6988 support turned resistance in AUD/USD. Sustained break there will confirm short term bottoming at 0.6864. More importantly, the decline from 0.7295 could have completed with three waves down to 0.6864 too. Further rise should then be seen back to 0.7205 resistance next. On the downside, though, break of 0.6938 minor support will turn bias back to the downside for 0.6864 low instead.

In the bigger picture, with 0.7393 key resistance intact, medium term outlook remains bearish. The decline from 0.8135 (2018 high) is seen as resuming long term down trend from 1.1079 (2011 high). Decisive break of 0.6826 (2016 low) will confirm this bearish view and resume the down trend to 0.6008 (2008 low). However, firm break of 0.7393 will argue that fall from 0.8135 has completed. And corrective pattern from 0.6826 has started the third leg, targeting 0.8135 again.

Pivot (invalidation): 0.6950

Our preference Long positions above 0.6950 with targets at 0.6985 & 0.7005 in extension.

Alternative scenario Below 0.6950 look for further downside with 0.6935 & 0.6925 as targets.

Comment The RSI has just landed on its neutrality area at 50% and is turning up.