USD/JPY
The USD/JPY pair fell on Thursday, testing the 112.50 level. This is an area that caused a little bit of a bounce, so it’s likely that we will find buyers sooner rather than later. The 111.50 level below should be supportive as well, as the 38.2% Fibonacci retracement level attracts a lot of attention typically. Because of this, I believe that it’s only a matter of time before the market reaches towards the 115 handle, and be on there. The 115 handle should be the gateway to go towards the 118.50 level. I have no interest in selling, I believe that eventually the Bank of Japan gets its way, and even cheaper Japanese yen.
AUD/USD
The AUD/USD pair went back and forth during the day on Thursday, as volatility continues. The gold markets course has quite a bit of influence when it comes to the Australian dollar, so I believe it’s only a matter of time before the buyers get involved as the 0.7650 level below is minor support, and I believe there’s even more below there. The gold markets look likely to break out to the upside, and this should continue to put bullish pressure on the Australian dollar. If we can break above the 0.7750 level, the market should then reach the higher levels, perhaps the 0.80 level which is attractive and important on longer-term charts.
In the meantime, I’m buying short-term pullbacks as an offer short-term buying opportunities. I think we need to see the gold markets clear the $1250 level significantly to continue to go higher here. I have no interest in shorting, there’s far too much in the way of bullish pressure so with this being the case it’s very unlikely that I will even consider that. It’s likely that waiting for the breakout is about as good as it gets.
