USD/JPY
The US dollar broke above the 112.50 level, showing signs of strength. The fact that we are trying to close towards the top of the candle also suggests that we have more to go. I believe in the longer-term uptrend in this market and the 111.50 level offered every bit of support that I had anticipated. The fact that the candle is so strong suggests to me that we will more than likely have continued bullish pressure in the pullbacks will be looked at as potential value by traders. It’s going to be rocky, but I believe that this market will then reach towards the 115 level above that is resistance. I don’t have any interest in selling, and believe that the uptrend will continue longer term.
AUD/USD
The Australian dollar had a volatile session during the day on Thursday, as we continue to bang around just above the 0.76 handle. The 0.76 handle has plenty of support all the way down to the 0.75 level, and the market is very choppy and heavily supported in that area. Because of this, I favor the upside but I believe that the gold markets will lead the way, so we need to see strength come back into the gold contract. Once it does, the AUD/USD pair should continue to go higher. The 0.7750 level above is massive resistance, and I think it’s going to take quite a bit of momentum to break above there. In fact, I believe that we will continue to buy on the dips going higher, at least in the short term. Expect quite a bit of choppy volatility, but in the and I think the buyers will continue to run this market. It’s not into we break down below the 0.75 level that we will see sellers get aggressive in my opinion.
