Technical Setups For USD/JPY, GBP/USD, USD/CAD - Goldman Sachs

Like the broader USD, the real question for some USD crosses right now is whether the market is ready to make a new high?

In USD/JPY, Goldman Sachs thinks that bullish confidence will likely develop above 120.62 (61.8% retrace from Mar. 9 th).

"In other words, until the market actually breaks 121.85-122.04 the threat of a double top will always be of some concern. From an Elliott wave perspective, this could end up being a complete v-wave sequence which began in July," GS argues.

"From a much more tactical perspective, it seems USDJPY is holding nicely against its 55- and 100-dmas (119.10-118.86). It formed a positive hammer exhaustion on Thursday’s session. Ideally want to remain above these two moving averages to remain constructive in the near-term," GS adds.

Same for GBP/USD, where GS think that a renewed bearish signal is simply to look for a daily close below the trend across the lows since Mar. ’13; 1.4719

"This break, once attained will likely signal a continuation of the underlying trend... The next big support/target area below that point is down at 1.4374," GS projects.

Finally, GS argues that USD/CAD is probably the weakest link as its currently could either be a range continuation pattern or a double top type pattern.

"The first support level to watch is the 55-dma at 1.2469. The market has not seen a daily close below this pivot since the July lows...As for resistance, the market needs to see a daily close above 1.2799-1.2835 to cancel out the double top and bearish key day reversal," GS adds. 

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