USD/JPY and AUD/USD Forecast - 8 August 2017

USD/JPY

The US dollar did almost nothing against the Japanese yen during the day on Monday, testing the 111 level, but struggled a bit to overcome that barrier. Ultimately though, I think that we are looking at consolidation between the 111 level and the 110 level underneath that. If we do break above the 111 level significantly, then I suspect that the market is to go looking towards the 112.50 handle. I believe that will eventually happen, but right now the market doesn’t look like it’s in a hurry to go anywhere, so we could see a bit of grinding in the meantime. That grinding could be a potential opportunity for those of you who choose to trade short-term charts. A range bound market could be very good for those of you who trade like this, and I believe that the 110 level will offer a bit of a “floor” in the short term.

USDJPY

AUD/USD

The Australian dollar had a slightly negative session after volatile trading on Monday. Ultimately, I think that this market is trying to roll over and a breakdown below the 0.79 level is likely. The 0.7750 level under that should be supportive though, so I’m not looking for anything major. I think that this pullback is indicative of what we are seeing in the gold markets, and quite frankly they are not supporting the Aussie at the moment. I don’t think were in a breakdown drastically, I just believe that this pullback is necessary as we have not retested the previous resistance barrier found at the 0.7750 level for support. That’s classic technical analysis, so a little bit of a drift lower could be expected over the next several sessions. The 0.80 level is a major barrier that goes back decades, so it will take a significant amount of momentum to break through.

AUDUSD

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.