USD/JPY and AUD/USD Forecast - 3 August 2017

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.

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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.

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.