During the European session on Friday (December 6), the USD/CAD remained on the sidelines until the November non-farm payrolls data was released. Bearish pressure may exist, but sellers need to close below 1.4000. GBP/JPY rebounded from the upward trend line, and the Random Index and Relative Strength Index rose; USD/JPY consolidated losses above the 148.65 support level.

USD/CAD competes for direction within a triangular pattern

(USD/CAD daily chart source: eHuitong)

The USD/CAD is currently at a standstill and is in a neutral symmetrical triangle at the top of the two-month upward trend. Traders are wary until key US and Canadian employment data are released.

Technical indicators show that since the stochastic oscillation indicator is set to negative reversal, the MACD indicator continues to decelerate below the red signal line, so the short-term trend tends to decline. However, traders may remain patient until the price rises above the 1.4075-1.4100 area or falls below 1.4000.

If there is a bullish breakout, the USD/CAD may once again challenge November's four-year high of 1.4172, and if it breaks easily this time, it could accelerate towards the resistance line of 1.4265. Next, if the psychological barrier of 1.4300 is given a green light, the rebound could be suspended around 1.4370.

On the downside, a fall below the 20-day exponential moving average (EMA) of 1.4000 may activate a sell order towards the 1.3945 resistance level, while a further pullback may take a break near the 50-day moving average currently at 1.3900. If the decline continues, the decline may extend significantly to 1.3820.

In summary, the USD/CAD holds a neutral to bearish trend and is monitoring the levels of 1.4000 and 1.4100. Breakouts in either direction may determine the next major trend.

GBP/JPY seems ready to challenge 192.00

(GBP/JPY daily chart source: Easy Exchange)

After rebounding from a support level around 188.00, GBP/JPY has been trading higher for the past few days and is currently trading around 192.00. This upward trend indicates a possible shift in market sentiment, and buyer intervention is driving up prices.

So far, the stochastic oscillator is moving strongly towards the overbought region, while the Relative Strength Index is trying to raise its positive sentiment below the 50 neutral threshold.

If the price continues to rise, the GBP/JPY may encounter immediate resistance at the 193.55 level, which is near the 20-day Simple Moving Average (SMA). The slightly higher 200-day and 50-day moving averages may pose significant resistance around 195.00 before the price will move towards the key 199.70 level.

Alternatively, a wave of bearishness could cause traders to start another battle with the short-term ascending trend line 188.90, which is before the 188.10 resistance level. Below this, the bearish structure may be suspended at the 183.70 support level.

Overall, technical indicators suggest that GBP/JPY is likely to continue its upward trajectory in the short term, particularly if it rises above the resistance level of 195.00. However, traders should remain cautious and watch for any signs of a reversal.

USD/JPY faces challenges as non-farm payrolls report is imminent

(USD/JPY 4-hour chart source: Easy Exchange)

USD/JPY formed a platform and recently rebounded from 148.65. However, as the US non-farm payrolls report approaches, USD/JPY faces a lot of resistance.

Looking at the 4-hour chart, USD/JPY surpassed the 23.6% Fibonacci retracement level during the downward process from a high of 155.88 to a low of 148.64. USD/JPY has recovered above the 150.00 resistance level, but is still facing a lot of resistance and is still well below the 100 simple moving average.

On the upside, USD/JPY is likely to face resistance near 151.50. There is also a key bearish trend line forming resistance at 151.40. The first major resistance is near 152.20.

A close above 152.50 could set the tone for the next increase. The next major resistance level is likely to be 153.10 of the 200 simple moving average, above which the price may climb towards the 154.00 resistance level.

On the downside, the immediate support level is near 149.50. The next key support is near 148.65. Any further loss could push the pair towards the 146.50 level.

At 19:31 Beijing time, USD/CAD reported 1.4038/39, an increase of 0.11%. GBP/Japanese was 192.1290/590, up 0.42%. USD/JPY rose 0.29% to 150.524/534.