USD/JPY
The US dollar rallied rather significantly during trading on Tuesday, reaching towards the downtrend line that has been part of a major symmetrical triangle. This pair does tend to be sensitive to trade and stock markets, so the fact that we keep rallying through the tariffs is a bit surprising, but the charts don’t lie, they tell you what the markets doing. I think there is a significant amount of resistance just above, and especially near the ¥113 level. I think it we can break above this downtrend line and the ¥113 level; this market will go much higher. However, don’t be surprised at all to see a short-term pullback to build up the necessary momentum to do something like that. I believe that the ¥111 level underneath there is massive support for this pair.
AUD/USD
The Australian dollar had a strong session during the day, breaking above the top of a shooting star from the Monday session, and the previous Friday session. This is a very bullish sign but we have a lot of work to do to get above the highs of last week. If we can break above the 0.7250 level, I think the market could continue to go towards the 0.7350 level. Quite frankly, the next 24 hours a going to be crucial for the Aussie dollar, because if we make that move it’s very likely we continue to pick up momentum. However, if we fail to break above that level, is very likely that the Aussie will rollover and continue the downtrend that we have seen for some time. That would make sense, because there are a lot of fears when it comes to the global trade situation.
