Looking at the 21 July 2011 USD/JPY currency pair. As you can see, it did have a negative day on Wednesday, This down day retested the 78.50 level as shown in the video. There appears to be an attempt by the market to push the pair below the 78.50 level. One has to wonder, how long it will take the central banks to intervene in this currency as they have previously done at levels not too far below where we currency stand (that’s the Japanese central banks which will push the pair higher if there is any intervention). Although the chart is bearish, we would leave this alone due to central banks likelihood of intervention.
Looking at the USD/CAD, it had another down day today, but interestingly enough it bounced at the old support level of 95.4. This hammer pattern is a bullish signal that suggest a possible pop for this currency, however, this does not look like a buying opportunity as the currency is bearish. Any short-term rally should be seen as an opportunity to short-sell the cross currency. What we are waiting on is a rally ending with a bearish candle or a fall below the resistance level.
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