USD/JPY and AUD/USD Forecast - 24 January 2019


The US dollar has rallied significantly during the trading session on Wednesday, testing the vital ¥110 level. We gave back gains from there though, and it looks to me like the sellers came back in force. Because of that, I think that we could see this market roll over significantly now that we had tested the major area, which is followed by the 61.8% Fibonacci retracement level, and the 50 day EMA. I think there are a couple of different reasons to think that we fall from here, not the least of which would be a relatively benign Federal Reserve. If that’s going to be the case, the dollar should continue to fall against most currencies as we had seen during quite a bit of the trading session in North America. Overall, I fade rallies as I have been saying, and that we will continue to go much lower.



The Australian dollar rallied slightly during the trading session on Wednesday but has struggled at the 50 day EMA. I think that the market probably will continue to show signs of weakness as the Australian dollar is so highly levered to the Chinese economy. I don’t think we’re going to break down drastically though, and quite frankly it would not surprise me at all to see this market struggle to make big moves in either direction. I believe that there is a massive support level that starts at the 0.70 level, so I’m going to let this market pull back a bit before thinking about buying. The 200 day EMA is just above the 0.7250 level, an area that I think will be a major barrier to breakthrough. If we can clear that area, then I think we could go higher. Otherwise, we continue to chop around and try to build a base underneath.


Christopher Lewis

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.