USD/JPY and AUD/USD Forecast - 26 July 2017

USD/JPY

The US dollar initially fell during the session on Tuesday, but found enough support below the 111 level to turn things around and rally significantly. We are approaching the 112 level, which looks resistance. I think if we can break above the top of the shooting star from the Wednesday session, the market will continue to go higher. In the meantime, the market is almost undoubtedly waiting to see what the results of the FOMC Statement will be, which this pair tends to be very sensitive to. If the FOMC appears to be hawkish, that should send this market back towards the 114.50 level. If we fall from here, I believe that there is a significant amount of support near the 111 level, and then most certainly at the 110 handle.

USDJPY

AUD/USD

The Australian dollar had a volatile session, as it continues to bounce around below the 0.80 level. That is an important figure based upon longer-term charts going back decades, so it does not surprise me that the market continues to grind overall. I think that pullbacks are more likely than not, but eventually the buyers should return. I think there is plenty of support down to the 0.7750 level, which is where I think the bottom of the uptrend is currently. That was resistance previously, and it should now be massively supportive. Once we do break above the 0.0 level, the market should continue to go much higher, as it will be a major break out and should be the next leg up in a massive uptrend of move. Ultimately, the market is a bit overextended, so it wouldn’t surprise me at all to see the market dip so that value hunters can jump in and continue to push the Aussie higher. Pay attention to gold, it has a massive influence as the 2 markets are highly correlated.

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.