USD/JPY
The USD/JPY pair fell significantly during the course of the session on Friday, which of course makes sense considering that the jobs number was so bad. During the month of May, the Americans only added 38,000 jobs, which has been estimated to be 160,000 gained. Because of this huge miss, people now wonder whether or not the Federal Reserve can raise interest rates at all. We ended up seeing the US dollar fell against most currencies around the world, and of course the Japanese yen would be no different. We are approaching the 106 level, and it now looks as if we are going to continue to go lower, based upon the fact that the market closed at the very bottom of the range.
AUD/USD
The AUD/USD pair broke higher during the day, as the US dollar failed against the Aussie. We closed at the very top of the range, and that looks as if we are going to continue to go much higher. If we can get above the 0.74 level, this is a market that should continue to go much higher, and at the very least the 0.75 handle. With that being the case, I think that short-term pullbacks will be buying opportunities, as the buyers have certainly taken control at this point in time. I think that selling is almost impossible as the US dollar has fallen completely out-of-favor at this point in time.
I would anticipate quite a bit of support at the 0.73 level now, and of course even below there. Once we get to the 0.75 handle, there will be a bit of a fight on our hands, but I think that we will eventually reach towards the 0.78 handle. Ultimately, this is a market that is highly influenced by gold, which of course had a strong day as well as the US dollar was beat up everywhere.
