USD/JPY
The US dollar went back and forth during the trading session on Friday against the Japanese yen, as we have hit technical resistance above. However, it’s interesting that we also can’t break down in this area. I think the market is trying to figure out where wants to go next, but we have a lot of back-and-forth action over the last several sessions. At this point, I think the one thing that’s worth paying attention to is the massive amount of resistance just above, and of course the multitude of reasons to think that the market will continue to struggle.
We have the 50 day EMA, the ¥110 level, the 61.8% Fibonacci retracement level, and of course the massive technical damage recently done. This draws reasons to think that this market could fall from here, but we just haven’t quite done it yet. If we can break down below the ¥109.50 level, then I think you get a selling opportunity. If we break out to the upside, all bets are off.
AUD/USD
The Australian dollar fell initially during the day on Friday during the Asian session as the RBA statement came out. However, we have bounced from the 0.7050 level, an area that has been important more than once. The fact that we have turned around of form a bit of a hammer suggests to me that we are in fact going to see a bit of buying jump into the market, so therefore if we can break above the highs of the session on Friday, I think that we will probably turn around and go towards the 0.7250 level. However, if we break down below here I will not be selling, I think there’s even more support to be found at the 0.70 handle.
