USD/JPY
The Forex market was quiet during the Thursday session, and the USD/JPY pair wasn’t any different. It looks as if the market is struggling to go higher, and that’s not a big surprise considering how overextended the market is right now. On top of that, it’s the holidays, so there won’t be enough volume to make major moves. Quite frankly, if we pull back from here I would love to buy some type a supportive candle underneath. Given enough time, I think we will get that move, as eventually the USD/JPY pair will target the 120 handle. I have no interest in selling, the uptrend has been far too strong and of course we have the interest rate hikes coming from the Federal Reserve, so that continues to push this pair to the upside.
AUD/USD
The Australian dollar of course fell during the session on Thursday, after initially trying to rally. It looks as if we will break down below the 0.72 level we could continue to go much lower. I have a target of 0.70, mainly because of the Federal Reserve’s interest rate hikes, and of course the gold markets falling apart at the same time. The gold markets are nowhere near finding support, at least not on the longer-term chart, so I believe that the Australian dollar will continue to fall as well. Rallies should be nice selling opportunities, and with that I feel that I will eventually get a nice trading opportunity.
I have no interest in trying to buy this pair, at least not until we get a longer-term positive signal. That could be at the 0.70 handle, but I need to see it on a longer-term chart, perhaps a weekly chart or even higher than that. Ultimately, the US dollar should continue to be one of the strongest currencies in the world, and that of course won’t be any different here.
