USD/JPY and AUD/USD Forecast - 25 May 2018



The US dollar has gone back and forth during the trading session on Thursday, falling towards the ¥109 level, before finding some type of stability. If we can break above the ¥110 level above, and of course the important 200 day moving average, the market should continue to go much higher. Ultimately, this is a market that I think will find buyers, based upon the interest rates in America going higher, and I think that it’s only a matter of time before we find value hunters coming back into this market. I believe that short-term pullbacks will have the market looking at the 190 and level again, but if we break down below there we could find ourselves going as low as the ¥107.50 level before we find support. We are dancing around the 200-day simple moving average, which always attracts a lot of attention.



The Australian dollar initially fell during the day on Thursday but turned around the show signs of support. I think that there is significant resistance above though, and when I look at the uptrend line just above, I think that will continue to put bearish pressure on this market, so I’m looking for signs of exhaustion. Ultimately, I think that as soon as we see signs of exhaustion, it’s a nice opportunity to start shorting again as the US dollar should continue to strengthen. It’s not until we break above the 0.77 level that I would be interested in trying to buy this market, and I believe that we will struggle mightily to get to that area. I have no interest in trying to fight what has been a significant bearish market over the last several months.


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.