USD/JPY and AUD/USD Forecast - 30 May 2016

USD/JPY

The US dollar gained a bit during the course of the day on Friday, as it continues to fight its way higher against the Japanese yen overall. However, we have recently seen a lot of noise in the range of the 110 handle, so I don’t think that were going to get a massive breakout yet. If we can break above the 111 level, I would be more apt to start buying. Pullbacks could be thought of as potential value propositions, but at this point in time I feel better playing the breakout to the upside than trying to decide whether or not the market is going to bounce yet again.

USDJPY

AUD/USD

The AUD/USD pair fell a bit during the course of the day on Friday, as we continue to meander just above the 0.72 level in general. That being the case, the market looks as if it is going to continue to bounce around in this general vicinity, so it’s not until we break above the 0.73 level that I’m convinced that we should start buying. However, there is a significant amount of support just below, so it’s likely that we will see a ton of volatility, and not much in the way of movement.

With this, I’m going to simply wait until we get a clean break above the 0.73 level or a break down below the 0.71 level to trade this market. Quite frankly, I’m not overly excited about trading the Australian dollar the moment, as it seems to be a bit lost and volatile. Gold markets are approaching pretty significant support, so that of course could have an effect on the Aussie, but I just don’t see it happening at the moment and therefore I am monitoring this market, but not necessarily worried about trading it at this point in time.

AUDUSD

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.