USD/JPY
The US dollar has fallen rather hard during the day on Wednesday as it was a complete “risk off” session. The turkey situation is getting a lot of people nervous, and they will quite often express that by purchasing the Japanese yen. That’s exactly what happened here, but I will point out that the 110 support level still holds true. If we do break down below that level, then we could go to the ¥109.50 level, followed by the ¥109 level. A bounce from here could send the market back towards the ¥111.50 level. I think the only thing you can count on in this pair is a lot of noise as we go through the emerging market currency issues. Until then, expect a lot of noise in this pair. I do believe ultimately we go higher though.
AUD/USD
The Australian dollar fell rather hard during the day but did see a bit of support near the 0.72 handle. However, I would not be buying it at this point. I think the 0.73 level above will offer plenty of resistance, and the measure to move from the break down from support should send this market looking closer to the .071 handle. Beyond that, gold got crushed, and at this point the US dollar is the only currency I’m comfortable holding, with perhaps the exception of the USD/JPY pair, which quite frankly I think it’s too noisy to put any real money into anyway. The US dollar was king against almost everything during the day, and the Australian dollar was never going to be any different, especially considering that there are trade war concerns with China, which of course the Australian dollar is a proxy for.
