USD/JPY and AUD/USD Forecast - 8 December 2016

USD/JPY

The USD/JPY pair went back and forth on Wednesday as we continue to grind around the 113.50 level. Ultimately, the market looks as if we are going to continue to see quite a bit of choppiness, but I believe that the market should continue to be one that buyers will be attracted to. I would like to see some type of pullback, and recognize that the 112.50 level below should be supportive. Beyond that, the market should even go down to the 110 level given enough time. I like the idea of a pullback to at least 110, because we have seen so much in the way of a bullish move and in such a short amount of time that we need to find some type of value in this pair. Ultimately, I think that we do continue to go much higher and have no interest in selling and am very interested in supportive pullbacks.

USDJPY

AUD/USD

The Australian dollar initially fell on Wednesday, as we dropped all the way down to close to the 0.74 handle. When it turned around, we ended up forming a hammer, and that hammer of course is a bullish sign. It looks as if were going to try to break above the 0.75 handle, which is an area that is massively resistive. If we can break above there, I think that we will then reach towards the previous uptrend line which will then be resistance. Ultimately, this is a market that will have a lot of noise back and forth and I think that eventually we will see some type of resistance there and could turn around at that point as well. If we can break down below the bottom of the hammer, that could be a very negative sign and that could send this market down to the 0.73 handle underneath there.

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.