The USD/JPY pair has formed a hammer on the weekly time frame as traders pushed the pair down through the 76 handle, only to back away in the end. With the Bank of Japan looking like they are ready to intervene, this is probably wise. If we can get above 77.50 - we would actually buy it.
The USD/CHF pair managed to break the top of the previous week's hammer, but then just simply sat there. This shows 0.8000 to be massive resistance, and as a result could lead to more weakness when the eventual move does happen.
The USD/CAD pair had a wild week, and simply seems to be a slave to the whims of the oil markets. We are watching parity and 0.98 for our next move. We think that if oil (CL) gives up the 80 USD mark to the downside, parity will be hopped over in this pair. Alternately, if the $90 mark gets broken to the upside in CL, this pair runs back towards the 0.9450 area.
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