USD/JPY
The US dollar fell significantly during the day on Wednesday, crashing into the 103 region. This is an area where I expect to see quite a bit of support, and we of course did see it. Ultimately, this is a market that will probably find quite a bit of buying pressure in this area, especially considering that the US dollar has been punished for the presidential polls, but quite frankly that’s been quite a bit of a knee-jerk reaction. This area should send the market looking towards the 105 level, and as a result we could try to build up enough momentum to break out to the upside in reach towards the 107 handle. Even if we break down below the 103 level, I feel there is quite a bit of support just below, so at this point in time I am “long only”, but I need to see some type of impulsive move to the upside in order to go long.
NZD/USD
The New Zealand dollar broke higher on Wednesday, clearly breaking above the 0.72 resistance level. We reach all the way to the 0.73 level above. However, we did pullback a little bit and it now looks as if the markets are probably going to continue going higher but I would like to see some type of short-term pullback to show signs of support that we can take advantage of. Ultimately, I would anticipate that the market could go to the 0.75 level above, and with that I think that short-term charts might need to show supportive or bullish candles in order for me to take advantage. However, I think that the 0.72 level would be essentially the “floor” in the market. With this, I am bullish but I do recognize that there is a lot of volatility at this point, still I am choosing to be very cautious about when I enter.
