USDJPY

The rapidly fading expectations over the Fed raising US rates in March has left the Dollar extremely vulnerable, while the reinforced wave of risk aversion across the financial markets which has boosted appetite for safe havens continues to strengthen the Yen. This catalytic combination of USD weakness and JPY strength has resulted in an aggressive depreciation in the USDJPY with prices plunging to 15 month lows at $114.20.This pair is heavily bearish on the daily timeframe and a solid breakdown below $114.00 should encourage sellers to send prices to the next relevant support at $112.00. From a technical standpoint, traders may take advantage of a correction towards $116.50 or a breakdown below $114.00 for targets stretching towards $112.00. A bullish move back above $118.50 invalidates this daily bearish outlook.

EURJPY

The mounting expectations that the ECB may unleash further stimulus measures in March amid the current financial turmoil has encouraged bearish investors to pile on their shorts on the EURJPY leaving the pair under some pressure. This pair is turning technically bearish on the daily timeframe and the strengthening Yen may act as a catalyst which should encourage a further decline back below 129.00. From a technical standpoint, prices are trading below the daily 20 SMA while the MACD is also in the process of crossing to the downside. A breakdown below 129.00 should encourage a further decline towards the next relevant support based at 127.00. Traders may trade the breakdown or take advantage of a correction towards 131.00 with targets stretching to 127.00. A bullish move back above 132.00 invalidates this daily bearish outlook.

GBPJPY

Sentiment remains bearish towards the Sterling and this can be viewed in the GBPJPY which has declined for an extended period. This pair is heavily bearish and a solid breakdown below 165.00 should encourage sellers to send prices towards 162.00. From a technical standpoint, prices are trading below the daily 20 SMA while the MACD has also crossed to the downside. Previous support at 165.00 may act as a dynamic resistance once breached, and this may invite an opportunity for bears to take the front seat once again. A bullish move back above 170.50 invalidates this daily bearish outlook.

USDCAD

The USDCAD has received punishment from the violent swings in oil prices and this can be reflected in the erratic movements which have been observed these past few trading days. The pair has followed a downwards trajectory and a solid daily close back below 1.3800 may trigger a further decline towards the next relevant support based at 1.3650. Prices are trading below both the 20 and 50 SMA while the MACD has also crossed to the downside. 

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