USD/JPY Technical Analysis

The US dollar initially tried to rally, only to fall apart against the Japanese yen during the trading session here on Wednesday, as it looks like we’re probably going to try to grind back down to the bottom of the overall consolidation. That means we could go down to the 146 yen level. That’s an area that’s been on a massive floor in the market. So, it’ll be very important and very interesting to watch. So, if we drop there and bounce, I think that is an extraordinarily good sign. If we turn it around and rally at this point, 149 yen probably will be the target.

AUD/USD Technical Analysis

The Australian dollar initially did fall against the US dollar, but then turned around to show signs of light at the top of the rectangle that we had been in previously. So, the 0.66 level looks like it is, in fact, trying to offer a bit of support based on market memory. We’ll wait and see how that plays out. But if we break down from here, then I’d be watching the 0.6550 level.

The 50 day EMA is right there as well. So, I think there is a floor in this market. If we can rally from here, the 0.67 level would be a bit of a target. We have been in an uptrend for quite some time. So, despite the fact that this has been a very lackluster move to the upside, the reality is that it’s been more of a grind. So, I’m not looking for explosive moves.

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