USD/JPY Technical Analysis
The US dollar has shot higher as the Bank of Japan meeting has come and gone. The 145 yen level is an area that I think a lot of people will be paying attention to, and we did, in fact, see some resistance there. Nonetheless, this is looking more and more like a market that is trying to get away from the yen, and you definitely see that in other currencies as well. If we can get a daily close above the 145 level, then I think you have the makings of a massive double bottom that goes back to September of 2024. Short-term pullbacks would be expected, and I do expect a lot of noise here, considering that we have the jobs number coming out on Friday as well.
AUD/USD Technical Analysis
The Australian dollar continues to chop back and forth right around the 0.64 level. Quite frankly, I just don’t think it has anywhere to be right now as it struggles with the 200-day EMA. It’s got a lot of inertia to digest here, and maybe that’s all we’re doing. But the longer we stay here without some type of upward trajectory, the more likely it is we do break down. As things stand right now, though, in the Australian dollar, you have to remain somewhat neutral.
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