USD/JPY
The US dollar pulled back a bit during the session on Thursday, and then turned around to rally again. The downtrend line above continues to keep the market down a bit, plus we also have a lot of concerns when it comes to the US/China trade situation. This pair is very sensitive to that, but it’s also sensitive to the stock market which has been breaking out to the upside in America during the day. I think at this point, if we were to get good news involving the Sino-American trade war, that would make this market explode to the upside. I do think that eventually we will go higher but we obviously have a lot to work out between now and then. I think that they will take a lot, so at this point I’m not very interested in trading this market overall. However, if we were to get above the ¥113 level, I think we could go to the ¥114.50 level after that. I think the ¥111 level underneath is massive support.
AUD/USD
The Australian dollar rallied yet again during the day on Thursday, as it looks like we are ready to go to the 0.7350 level above, an area that was previous support and resistance. I think that it’s only a matter of time before the sellers return, but right now it certainly looks as if we are getting a bit overextended, so I think that this rally is going to be somewhat short-lived. If we do break above the 0.7350 level, the market could then go to the 0.7450 level after that. In general, I think that this market will continue to suffer at the hands of the situation in China, but right now it looks as if the US dollar is being punished.
