The euro has been very noisy against the Japanese yen, but it is squeezing out a little bit of an attempt to break to the upside. The 185-yen level continues to be an area that I’ll be watching very closely, especially now that the 50-day EMA sits just 6 pips above there.

If we can clear both of those, then I think that will allow this market to continue going higher. The interest rate differential continues to favor Europe, and it probably will for as long as I can imagine, and therefore, I like buying short-term dips.

The Japanese yen has been under severe pressure against multiple currencies, and that remains the case as the Bank of Japan really won’t be able to do much as far as tightening monetary policy beyond maybe another 25 basis points.

AUD/JPY Technical Analysis