USD/JPY Technical Analysis

The US dollar has skyrocketed against the Japanese yen, breaking above the 145 yen level almost immediately, and now we are threatening that 50 day EMA. Ultimately, I do think this is a situation where traders will eventually try to push this market back to the upside anyways, because quite frankly, the Bank of Japan has a major issue on its hands in the form of a lackluster bond market. They will sooner or later be forced to do a bit of quantitative easing. When they do, the Japanese yen will sink. This is one of the few places that I expect a complete turnaround in the US dollar. So, I like buying dips. I think we will go higher.

AUD/USD Technical Analysis

And yet again, we find ourselves near the 0.6550 level in the Australian dollar. The market broke down below that level for a brief moment, only to turn around and bounce a bit. So, it’ll be interesting to see how this plays out, but I do think you have a situation where traders are going to continue to look at this as a magnet for price. If it can hold for support, then that’s a good sign for the Australian dollar. It could send the Aussie dollar as high as 0.67, we’ll just have to wait and see.

The move higher has been in an extreme grind more than anything else. So, if you’re a short term kind of scalper type of trade aficionado, then you’ll love the Aussie. Clearly, it’s a buy on the dip market, but as far as momentum to the upside, it’s very slow trading indeed.

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