USD/JPY
The US dollar bounced on Tuesday, breaking above the 113.50 level. It appears that the 112-level offered enough support to have traders interested in going long yet again. However, I do see a significant amount of resistance at the 115 level. It is because of this that although I am longer-term bullish when it comes to this market, I am a bit hesitant to start going long here. If we can break above the top of the shooting star at the 115 handle, I think that’s a clear sign that we are going to go much higher. If you are a longer-term trader, perhaps it is a possibility to buy and hold here, but just know we could run into a little bit of trouble over the next several sessions. Having said that, I have absolutely no interest in selling.
AUD/USD
The Australian dollar had a volatile session on Tuesday, going back and forth during the bulk of the trading session. The candle ended up looking a relatively neutral, as the 0.76 level look to be a little bit too resistive. If we pull back from here, I think this point of support on at the 0.75 level to keep the market afloat, so I’m not necessarily looking for some type of breakdown. I recognize that there is support between the 0.75 level and the 0.74 handle, and that it is essentially a very strong “zone”. Because of this, I think that it is sooner rather than later the buyers return, but you must keep an eye on the gold markets. After all, that commodity drives the value of the Aussie over the longer term it seems, and that market is currently facing tough resistance.
One thing I think you can come on over the next several sessions is going to be volatility, so for myself, I’ll be standing on the sidelines.
