USD/JPY
The US dollar fell against the Japanese yen during training on Friday as we reached towards the 109 level. I believe that the 190 and level is a significant amount of support, so it wouldn’t surprise me if it held. However, if it does not I see a significant support region near the ¥107.5 level, so I think that it’s only matter of time before the buyers get involved. Although the US dollar is one of the strongest currencies that I follow right now, the Japanese yen has a certain safety factor involved in it, so it makes sense that we could be falling due to the unraveling of the negotiation meeting between the United States and North Korea. Regardless, I think that what we are looking at is a pullback in a longer-term uptrend. If we can break above the top of the shooting star shaped candle during the day on Friday, that could also be a nice buying opportunity as we should then go looking towards ¥111.
AUD/USD
The Australian dollar initially trying to rally during the day on Friday but rolled over to reach towards the 0.7545 level. The market looks ready to go back towards the 0.75 level, and I think it’s only matter of time before we break down below there and go looking towards the lows again, followed very quickly by the 0.7350 level. Rallies at this point are to be sold, as the US dollar is gaining significant strength due to interest rate hikes coming out of the Federal Reserve and of course the goal markets falling significantly. I have no interest in buying this pair, I think that the Australian dollar will be somewhat soft during the summer as we await the hikes this fall.
