USD/JPY
The US dollar initially tried to rally during the day on Wednesday, but found enough resistance near the 111 level to turn things around. By doing so, we formed a very negative looking candle, and I also think that there is plenty of support underneath that the 110 level, and I think that support extends down to the 109 level. I believe that today will be very quiet, simply because we have the jobs number coming out tomorrow. That of course is highly influential in this market place, and I believe that there isn’t enough conviction in the markets to make a significant move in my estimation. I believe that as soon as we get the jobs number, we could get the reaction that is tradable. The better the jobs number, the better this pair will do.
AUD/USD
The Australian dollar fell initially during the day, but turned around to form a bit of a hammer. The 0.80 level above is important, and of course is an area that we’ve seen quite a bit of noise over the last several decades. I think it’s good to be difficult for this market do breakout significantly, least not until we get the jobs figures coming out of the United States. There is a lot of support below though, so I think that every time we pull back, there will be buyers looking to get involved. A move above the 0.8050 level should send this market looking towards the 0.81 handle, and then eventually the 0.82 handle after that. Pay attention to gold, it does have a certain amount of influence on the Australian dollar, and if you can rally, and more importantly break above the $1300 level, this market should go much higher.