USD/JPY
The US dollar rose slightly against the Japanese yen during the session on Friday, but we are still very much trapped within the consolidation area that we’ve been in for some time. Because of this, it’s very likely that the market isn’t ready to go anywhere quite yet. I believe that the resistance above will more than likely continue to keep this market down to as the 115 level is very stubborn. If we got above there, the market could go much higher, but at this point in time it’s likely that we will see an exhaustive candle that appears and then turned the market back around. I believe also that there is a massive amount of support somewhere near the 112 level, and with that being the case I feel that the market will continue to bounce around.
AUD/USD
The AUD/USD pair broke the top of the hammer from the Thursday session during the day on Friday, and of course has cleared the 0.75 level as well. Because of this, I feel that the market will continue to go higher as we are starting to see the next leg higher form. This is a very bullish market, and it now looks as if the momentum has built up enough that we can continue to the next major resistance barrier, which is the 0.80 handle.
Pullbacks at this point in time should continue to have plenty of buyers below all the way down to the 0.74 level, as I see quite a bit of support in that general vicinity, and also recognize that there is quite a bit of upward momentum at this point in time. Pay attention to the gold markets, they should continue to drive the value of the Australian dollar higher as well, so given enough time it’s very likely that we will continue to see buyers again and again.
