USD/JPY Technical Analysis

The US dollar initially pulled back against the Japanese yen but turned around to threaten the 149 yen level again, an area that is the resistance at the top of a consolidation zone. The consolidation zone spanning from 149 yen to the 146 yen level underneath has been in effect since the beginning of August. This looks a lot like a market that’s trying to do everything it can to break out. If and when it does, then you’re looking at a move to the 151 yen level next. If it does not, then we may go looking to the 200 day EMA, which is right in the middle of that consolidation region.

AUD/USD Technical Analysis

The Australian dollar continues to struggle, hanging on to gains, as we rallied a bit in the early part of the session, but have given back about half of the gains, just like we did during the previous session. The Australian dollar seems hell bent on going to the 0.6550 level underneath, an area that’s been like a magnet for price and now features a 50 day EMA. Out of all of the major currencies, the Australian dollar was one of the major underperformers through the sell-off of the US dollar for months, so logic dictates that if the US dollar starts strengthening, the Aussie dollar may be in serious trouble.

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