USD/JPY
The US dollar has gone back and forth during the trading session on Wednesday, essentially forming a neutral candle. That’s a bit of a victory considering just how volatile the trading session was when it comes to risk appetite. The fact that we are not below the 61.8% Fibonacci retracement level is a bit of a miracle if you take a look at the stock markets. This pair does tend to move in concert with stock markets, so it is kind of surprising that we didn’t see more downward pressure. I think this shows that there is significant resilience in this pair, so a break above the top of the Monday, Tuesday, and now Wednesday the candles will signal fresh, new buying that you can take advantage of. In the meantime I think short-term pullbacks will continue to attract buyers as well.
AUD/USD
The Australian dollar has fallen during the day after initially trying to rally, showing signs of weakness yet again. The market looks as if it is trying to break down a bit from here but we have a lot of support at this level as well. Because of that, I don’t have any interest in buying or selling this pair, and until we break down below the 0.70 level, which would have me selling, or some type of exhaustion near the 0.7150 level, which would also have me selling. As for buying the Aussie, I have no interest in doing so until we can clear the 0.72 level, something that I don’t see happening anytime soon. Beyond that, we would also need some type of good news coming out of Sino-American relations.
