USD/CAD and USD/JPY Short

I was on Bloomberg Television last night talking about how I like shorting USD/CAD and how USD/JPY could hit 95 (USD/CAD was 1.2303 last night and USD/JPY trading at 97).

Click the image to watch the video. It is on the right hand side of the screen.

Source: Bloomberg

Source: Bloomberg

Here is a chart of USD/CAD:

Source: eSignal

Source: eSignal

USD/CAD is in the range trading zone, which I determine using Bollinger Bands. Although the 1.2065 level is important support, the strong retail sales report and bounce in oil prices should continue to drive the currency pair lower. If 1.2065 is cleared, USD/CAD could hit 1.1840.

Here is a chart of USD/JPY:

Source: eSignal

Source: eSignal

USD/JPY has entered my sell zone, which I establish using Bollinger Bands. If it closes below 95.50, there is scope for a move to 94.00

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