USD/JPY
The US dollar fell against the Japanese yen during the session on Thursday, testing the 115 level. This is an area that I expect to see quite a bit of support at, but I also believe that the support runs all the way down to the 111.50 level underneath. So, in other words, I have no interest whatsoever in selling this market and believe that sooner or later that the buyers would get involved on supportive candles. I believe that the longer-term uptrend continues, because the Japanese yen is sold off against almost everything. I have a target of the 120 handle, and above there. I believe that pullbacks will continue to offer value that will be too difficult to ignore.
AUD/USD
The Australian dollar broke above the 0.73 level on Thursday as well, and shot towards the 0.7350 level. We are starting to see the market drop a little bit, showing signs of exhaustion, but I think given enough time the more important thing will be whether we can break back below the 0.73 handle. If we do, the market should then fall from there and continue the longer-term downtrend. I have no interest in buying this market, I believe that the Australian dollar will continue to struggle for several different reasons, not the least of which will be the overall bearishness of the gold market. However, recently we have seen a bit of a reprieve in the downward pressure against gold, and of course it makes sense that we see a continuation of that over here in the AUD/USD pair.
Given enough time, I think that the sellers will get involved. There is far too much in the way of noise above that think that it’s going to be easy to sell. The oversold condition was begging for some type of bounce, and now we have it.
