USD/JPY and AUD/USD Forecast - 7 January 2019



The US dollar initially fell on Friday but got a bit of a boost from a strong jobs figure, and a huge move in the stock market after Jerome Powell suggested that the Federal Reserve was watching the markets and therefore there could be a bit of a “Fed put” being thought of yet again. Even though we have seen a break above the ¥108 level, we are still finishing the week down quite a bit. I think that we are looking at a short-term bounce, only to see the ¥110 level being far too resistive to continue to go higher. There is a certain amount of pessimism out there, and even though we got a bit of a boost late on Friday, it should be noticed that it had nothing to do with actual global or economic strength, except for perhaps the jobs figure. However, there’s a lot of arising wages and that number, and that should be bad for corporate profits. See the problem here? Between that in all of the trade issues, I think that this market is simply bouncing to correct from and oversold position but I do not expect it to be able to clear the ¥110 level easily.



The Australian dollar had a good day, but most of the gains were very late in the session, perhaps people getting out-of-the-way ahead of the weekend. The 50 day EMA is just above, and there is most certainly a downtrend in this pair. I do think that maybe were in the midst of a correction though, and if the US and China can come together or at least sound more amicable, that could be good for the Aussie going forward. I believe that the 0.7250 level will be a bit too far for the buyers to overcome though, and I believe that an exhaustive candle between here and there is the cell signal you’ll be waiting for.


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.