USD/JPY and AUD/USD Forecast - 25 May 2017

USD/JPY

The US dollar initially rallied on Wednesday against the Japanese yen, you can see that there has been a significant amount of noise between the 112 and the 112.50 level. By running into that, the market turned around to form a shooting star and it looks as if we are going to continue to consolidate in the immediate area. I think there is more of a short bias over the next couple of sessions, thereby allowing the market to build up a bit of momentum and perhaps volume to try and break higher. It’s not until we break above the 112.50 level that I’m comfortable buying though, so having said that I think it’s likely that the markets will be choppy but after the FOMC minutes, looks as if the market is going to be a little bit on the soft side in the short term.

USDJPY

AUD/USD

The Australian dollar initially fell on Wednesday, testing the 0.7450 level underneath, only to turn around and form a massive hammer. If we can break above the top of the shooting star from the Tuesday session, the market will continue to go higher. If we can do that, I would like to see that accompanied by the gold markets rallying, in order to become trouble hanging onto a position. In the meantime, the market should continue to see choppy noise, and I believe it’s only a matter of time before the market will have to make up its mind. Once it does, more than willing to follow, but right now I think it seems to be favoring an upside move in general. Ultimately, I believe that in the next couple of days we should have quite a bit more clarity. Until then, I believe that we have to wait for the market to tell us which direction to be.

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.