USD/JPY
The USD/JPY pair bounced a bit during the day on Monday, after gapping lower. It appears that the market is still attracted to the 105 level, and that we could very well break above there given enough time but I feel that we need to continue to build up quite a bit of momentum in order to actually make this move. The 103 level below continues to be the “floor” in this market as we have quite a bit of bullish pressure. I have no interest in selling, and I feel that given enough time we will reach towards the 107 level above. With that being the case, I have no interest in selling and believe that sooner or later buyers will return so therefore if you are patient enough, you can take advantage of this momentum.
AUD/USD
The Australian dollar broke higher during the day on Monday, clearing the top of the hammer from the session on Friday. This is a market that looks like it is starting to try to go higher, but this is been more of a grind higher than anything else. We keep forming “higher lows” in this market, and at this point I feel it’s only a matter time before we trying to reach towards the 0.7750 level. If we can get above there, the market should continue to go much higher, and perhaps reach towards the 0.80 level above which is a longer-term target and of course important area.
Every time we rally and then pullback, I think buyers will continue to buy this market again and again as you certainly cannot sell at this point. With all of the “higher lows” that we’ve seen, I don’t have any interest in selling because I think that the support is gaining, not falling and therefore we should continue to see quite a bit of momentum to the upside over the longer term.
