USD/JPY
The USD/JPY pair rallied during the course of the session on Wednesday, as we continue to see quite a bit of bullish pressure. I think that there is a massive amount of resistance above though, regional into the 105 level. If we can break above there, the market then is free to go much higher, perhaps reaching towards the 107 handle after that. An exhaustive candle could have me selling, but we honestly don’t have it at the moment so I believe that the buyers are trying to build up enough momentum to finally break out to the upside. I also recognize that the 103 level below is massively supportive, so pullbacks to that area that shows signs of support could be buying opportunities as well. It’s not until we go well below the 103 level that I’m considering selling.
AUD/USD
The Australian dollar went back and forth during the course of the session on Wednesday, showing signs of exhaustion but more of a grind than anything else. The shooting star should continue to signal that the sellers are in control and that we should reach down to the 0.75 handle, which of course is the beginning of massive support. Even if we rally from here, and of course broke above the top of the shooting star, I would be a little bit hesitant to buy in this particular circumstance because there so much in the way of resistance above and in several different levels all the way to the 0.7750 handle above.
Ultimately, this market looks as if it will continue to follow the gold markets, so having said that the attention to those as well because at this point time they are simply meandering sideways which of course is what we are seeing over here. If we get some type of move to the upside in the gold markets, this is a market that should continue to go higher as well.
