USD/JPY
The dollar initially tried to rally against the Japanese yen, but as you can see turned around to fall during the day. Ultimately, this is a market that looks very likely to continue to drift a bit lower but I think there is a significant amount of support just below. Given enough time, I think that the Bank of Japan will make sure that the market turns around, but I also believe that there are enough people in the market that are aware of that, and that should keep this market somewhat afloat. I believe that the 100 level is essentially the “line in the sand” when it comes to the Bank of Japan. Any supportive action in this area will more than likely be a buying opportunity.
AUD/USD
The AUD/USD pair initially fell during the day on Tuesday but turned around to form a nice-looking hammer. The hammer is pure seen the 0.7675 level, an area that had been massively resistive previously. If we can break above the top of that candle, I believe that we continue to go much higher. However, keep in mind that the Royal Bank of New Zealand has an interest rate announcement during the course of the session, and that will cause a bit of a knock on effect in this pair. Ultimately, does look like we are trying to bust to the upside, and it’s probably only a matter of time before we do. Because of this, I believe the pullbacks will offer value and eventually the Australian dollar will continue to go higher. Not only that, the gold markets look fairly healthy as well and I feel it’s only matter time before the breakout also. Remember, there is a positive swap when trading this market, and that is one of the biggest appeals to owning the Aussie dollar at the moment.
