USD/JPY
The US dollar fell against the Japanese yen during the Thursday session, as many traders will have taken profits for the end of year reporting. Ultimately, the market is very bullish though, so I believe that eventually the buyers come back and push this market higher. A supportive candle underneath is reason enough to go long, and I believe that the 115 level is going to be a bit of a “floor” in this market as there is an exhaustive amount of support just below all the way down to the 112 level. Given enough time, I think this market will find the buyers as the Federal Reserve looks to raise interest rates again. I have a target of 120 going forward.
AUD/USD
The Austrian dollar rallied on Thursday, as it’s possible that the move was based upon profit-taking as we have seen so many traders short this market. The gold market of course is very soft longer-term, so I believe it’s only a matter of time before the gold markets fall, and then of course the Australian dollar falls as well. I think that the real target is the 0.70 level below, and because of this any rally should end up being a selling opportunity. I believe that the 0.73 level above should be resistive as it was previously supportive, and with that being the case it’s likely that the sellers will enter the market somewhere in that area.
I have no interest in buying the Australian dollar currently, at least not until we see some signs of the gold market turning around and showing signs of bullish pressure. Currently, I feel that it’s only a matter of time before the gold market selloff on short-term rallies, and reach down to much lower levels, specifically the $1000 level.
