USD/JPY and AUD/USD Forecast - 4 February 2019

USD/JPY

The US dollar initially dipped a bit during the trading session on Friday, but after the jobs number rocketed higher to break above the ¥109 level handling and approach the ¥109.50 level. While this is a very bullish sign, the reality is that there is a ton of resistance just above. I would not be surprised at all to see the ¥110 level reject price yet again, and then the market would roll over. I certainly think at this point we are likely to see a big fight there as not only do we have the ¥110 level, but we also have the 50 day EMA and the 61.8% Fibonacci retracement level. With that in mind I am looking to fade rallies that show signs of exhaustion closer to the ¥110 region. I believe that the ¥108 level is massive as far as support is concerned.

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AUD/USD

The Australian dollar has fallen a bit during the Friday session, as we continue to hover around the 200 day EMA. I would fully anticipate that we could get a little bit of a pullback from here, but I also recognize that there should be a lot of support underneath. I believe that the 0.70 level underneath is massive in its importance when it comes to support longer term, that extends down to the 0.68 handle. With that in mind, I would not be surprised at all to see a bit of a pullback after we have had such bullish pressure, and of course we have a lot of conflicting signals coming from the US/China trade situation. Longer-term though, I do believe the buyers are trying to find a bit of a base in this area and a trend change is always a messy affair.

AUDUSD

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.