USD/JPY Technical Analysis

The US dollar has rallied quite nicely during the trading session here on Friday, as we are now testing the 200 day EMA. All things being equal, this is a market that I think will continue to stay in the same range that we’ve been in, with 146.50 yen on the bottom offering support and the 149 yen level on the top offering resistance. We’re basically just stuck in the middle here.

AUD/USD Technical Analysis

The Australian dollar is pulling back a bit, but I have to say out of the three charts, this is probably the most bullish looking chart. I didn’t think I would say that anytime soon because, quite frankly, the Australian dollar has been a major laggard. I would anticipate a pullback, maybe towards the 0.66 level, where, right around that area, I think you will start to see buyers come back in. Whether or not they can hold remains to be seen, but the Australian dollar rallying like this is a fresh new look because even when it was rallying for all those months against the US dollar, it was doing so very slowly, especially in comparison to other places like the British pound, the Canadian dollar, or even the euro.

So, with all of this, I have to ask questions of whether or not the Australian dollar is about to play catch up. We don’t know, but it certainly looks the most bullish of the three charts at the moment, which is a sudden change. 0.6550 level has been like magnet for price. So, we’ll have to see if that continues if we get a substantial pullback.

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