USD/JPY
The US dollar fell during the trading session on Friday, as we continue to see a lot of resistance between ¥111.50 and ¥112. Because of this, I think that the market is probably set to pull back, but only just so as there will so obviously be interested in the 200 day moving average which is at the ¥111 level. This is a pair that continues to be very choppy and noisy, and therefore almost impossible to trade for any serious move. If we can break above the ¥112 level, then it’s possible that we could go all the way to the ¥113.50 level. However, if we turn around and break down below the ¥111 level, then I think we may get a move down to ¥110. Regardless, this is going to be a very choppy affair, so I would wait for an impulsive candle in one direction or the other to put money to work.
AUD/USD
The Australian dollar rallied a bit during the trading session on Friday again as we reached towards the 0.71 level. That’s an area that of course has been important as far as resistance is concerned as of late. As we await some type of resolution to the US/China trade relations situation, or perhaps some type of sign that stimulus and China is working, the Australian dollar is simply grinding sideways overall.
That being said, there is a massive amount of support underneath extending all the way from 0.70 down to the 0.68 level. With that, I have no interest in shorting this market, and I believe that short-term pullbacks should continue to be buying opportunities. The 50 day EMA above continues to cause a bit of resistance, but overall this is a market that should offer a “buy on the dips” situation.