USD/JPY and AUD/USD Forecast

USD/JPY

The US dollar rallied against the Japanese yen during trading on Tuesday, as we are reaching towards the ¥114 level. However, there is so much in the way of resistance between here and the ¥114.50 level that I think the sellers are coming back rather quick. I believe that this market will roll over rather soon, and that we will probably pull back in order to build up a bit of momentum. If the uptrend line underneath were to get broken and of course the 200 day EMA gets broken, that would obviously be a very negative sign. If that doesn’t happen, then this should end up being a buying opportunity at lower levels. I anticipate that ¥113 will probably offer some support as well. Keep in mind that the interest rate differential between the two currencies still favors a stronger US dollar, but there is a massive barrier above focused around the ¥115 region.

USDJPY

AUD/USD

The Aussie dollar tried to rally during the day but then rolled over again as the 0.7250 level continues offer plenty of resistance. I think at this point, rallies are to be sold as we continue to worry about trade headlines when it comes to the US/China situation. On Thursday, Donald Trump will meet Xi in Argentina, and I think people are starting to come to grips with the idea that nothing is going to come out of it. Because of this, I think the Aussie dollar will reach lower levels, perhaps down to the 0.70 level.

If we do rally from here, I think the 0.7350 level than the 0.75 level both could offer pretty significant resistance. A break above there of course would change everything but in the meantime I think what we are looking at is the market simply waiting to see how things play out and Buenos Aires.

AUDUSD

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.