USD/JPY
The Bank of Japan has just released monetary policy meeting minutes. The BOJ kept stimulus unchanged. The Bank is going to purchase Japanese government bonds (JGBs), so their amount will increase at an annual pace of about 80 trillion yen. Regard to the outlook, the economy of Japan is expected to continue its moderate recovery trend. The year-on-year rate of increase in the CPI is likely to be about 0 percent for the time being, due to the effects of a decline in energy prices.
The price is consolidating at a 8-year high. Intraday support was found at 121.20 and 121.00. We still opt to recommend buying on every dip. Now, we are revising the targets at 124, 125.00, and 125.75. The prices are making higher lows and higher highs on the h4 chart. Support has climbed from 119.80 to 121.00. It's a good sign for further room for upswing. If the price closes above 121.85 on a weekly basis, we can see 128.00 as well. It's an one-side move all the way to new highs. Another upswing looms above 122.0 with targets at 123.00 and 123.20 in a day or two. Later, 124.00 and 125.00 are expected. Until the h4 candle closes above 120.80, a long trade remains in play. The overall picture favours buying on dips. Key levels to watch: must close above 121.85. Trade: we remain buyers.
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USD/CAD
The pair is consolidating at a higher level of 1.2824. The pair breached the previous high of 1.2798 but was unable to close above that level. Today, early at the Asian session, USD was trading higher against CAD. Bulls are on a safe side in case the price will close above 1.2800 on a daily basis. Bulls and bears are waiting for Wednesday. Intraday support is likely to be found at 1.2750 and 1.2720. Weekly support is seen at 1.2680 and 1.2620. Intraday resistance is seen at 1.2800 and 1.2825 and weekly resistance is likely to be found at the level of 1.3000. Bulls must close above 1.2800 as soon as possible. Bulls can challenge 1.3000 and 1.3250 in case prices close above 1.2800. We advised caution near 1.3000 odd level, as it's a multi-month resistance.
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