Forex Weekly Outlook June 6 – 10 (USDJPY)

Since USDJPY started current downward trend on 16th August 2015 after China devalues the Yuan on the 11th of the same month, USDJPY has lost 1,842 pips, largely due to its safe haven status. But its failure to break 111.65 resistance level after three attempts, and eventually breaching 107.47 support level on Friday, suggest that the continuation of the downward trend has started and as long as investors are yet to know the fate of EU and UK regarding the referendum, and the US June rate hike decision off the table. The Japanese yen remain attractive, especially with G7 agreement hindering BOJ from intervening in its gain.

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This week, as long as 107.47 resistance level holds, I am bearish on USDJPY with 105.21 as the first target and 102.17 second target.

GBPCAD

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The Canadian dollar continues to gain with rising oil prices, and with OPEC and non-OPEC nations committed to sustaining current surge in oil prices. This pair offers new sell opportunity of about 265 pips after breaking 1.8745 support level, with the British pound struggling with brexit. I am bearish on GBPCAD as long as price remains below 1.8745, with 1.8480 as target.

GBPCHF

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GBPCHF is another pair that interest me, since Tuesday GBPCHF has lost almost 500 pips, but breaking 1.4197 support level makes me think GBPCHF is set for 1.3926 as long as 1.4197 new resistance holds. I am bearish on GBPCHF this week, a sustained break of 1.3926 should open up 1.3701 second target in coming days.

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