The USD/CAD pair had a wild day on Tuesday as the Bank of Canada not only held interest rates steady, but also pointed out that the global economic conditions continue to have them worried about the Canadian economy, as it is so commodity related. Because of this – the parity level held firm, and on a break of the day’s range – we would buy. We can’t sell until we close below the parity level on the daily chart.
USD/JPY fell during the Tuesday session, but bounced during the later hours. With the threat of the Bank of Japan intervention, this pair seems to have a tough time getting below the 76 handle for any length of time. The BoJ has been even more vocal than usual over the last few days, and as such - intervention is a real possibility. On a break of the top of the daily candle from Tuesday, we would have a buy signal as the hammer would be confirmed. Needless to say, the gains are probably somewhat limited by the range, but selling certainly is a viable move with the BoJ below.
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