USDJPY  77.49  -0.36%

Profit taking has spurred on the yen buying today against the US dollar – taking the currency pair lower on a failure to break through technical resistance at 78.25.  Although the USDJPY has bounced back to just below the 77.50 level, the pair is susceptible to further downside – until support levels at 77.25.  At that level, technical buying should kick in to stabilize a foundation for momentum higher.  Expect further equity market selling to translate into safe haven trades in favor of the Japanese yen.

USDCAD  1.0003 -0.39%

Supportive of the push towards parity is the current commodity momentum, even as we get some long position paring heading into the commodity market close.  With crude oil still higher by 1.3% at $100.69 a barrel, it’s no surprise that the Canadian dollar has made headway, leading the commodity bloc currencies on the day.  The spot price is currently testing long term support levels at 0.9997  against the US dollar, with a break lower indicative of further selling in USDCAD.  If that happens, look to 0.9911 as the next major test of support.

EURJPY  101.59 -0.3%

In similar fashion to the yen major currency, the EURJPY currency pair has lost some steam in the last 24 hours, finding resilient resistance at the psychologically important 102 barrier.  Although a correction back to 102 is plausible in the short term, the move won’t do the spot price any good – with technical indicators pointing towards a decline in the exchange rate.  With the current trade breaking through trendline support, we anticipate a move towards levels at 101.60 and 101.00 – where buying interest should resurface.