USD/JPY Technical Analysis

The US dollar has been somewhat sideways against the Japanese yen during the trading session on Wednesday as we threatened the 145 yen level, which of course is a large, round, figure but an area that has been important more than once. The 50 day EMA is dropping towards that 145 yen level, so getting over that indicator would be very bullish.

In the short term, I think we are just simply going sideways, waiting to see what happens next. I also recognize that the 142 yen level is an area that a lot of people would look at as important. And if anything, I think that a breakdown below there has us testing the previous triple bottom at 140 yen.

AUD/USD Technical Analysis

The Australian dollar has dropped a little bit during the early hours against the US dollar, although we have bounced since the beginning of the session. The 200 day EMA looks as if it is trying to offer support underneath, right along with the 0.64 level, the 0.635 zero level underneath there is the floor in the area that I think is the current consolidation. The Monday candlestick, which was Memorial Day in the United States, being broken above would be a very bullish sign and could open up the possibility of a move up to 0.67.

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