USD/JPY and AUD/USD Forecast - 11 August 2016

USD/JPY

The USD/JPY pair fell during the course of the session on Wednesday, but at this point in time I believe that the market will more than likely find quite a bit of support just below, as the area between the 101 level and the 100 level below could offer a bit of a barrier to breaking down significantly. With this being the case, I believe that the Bank of Japan continues to influence this market, and therefore I don’t think that the sellers will be very comfortable shorting for very long. I believe that any reason whatsoever to go long, people will jump on it. At this point in time though, this is a market that is very choppy, so it’s very interesting to see how this has played out, and with that being the case I think you have to be very cautious, and more importantly patient.

USDJPY

AUD/USD

The Australian dollar broke out to the upside during the course of the session on Wednesday, clearing the 0.7675 level. With this being the case, I feel that the market should continue to grind higher, but the key word of course is going to be “grind.” This is a market that is heavily influenced by the gold markets, so having said that if we can get some type of rally over there, we should get a rally over here.

Pullbacks will more than likely find quite a bit of support below, as we typically do after breakouts. In fact, I can almost make an argument for a bit of a triangle (ascending) just below. With that being the case, the market could very well find itself grinding 200 pips higher. Ultimately, I believe that we are trying to get to the 0.80 level over the longer term, but in the short-term it could be very choppy. If you are patient enough, you should continue to be rewarded to the upside.

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.