USD/JPY Technical Analysis
The US dollar has fallen against the Japanese yen, but it found support at the same 146 yen level again during the trading session on Thursday to bounce a bit. So I think at this point, we will have to see whether or not we can turn around and break above the top of the candlestick for the day on Thursday. And then at that point, I would anticipate that more momentum would come into the picture. The 145 yen level underneath is a large, round psychologically significant figure and an area that previously had been support and resistance, so it’ll be interesting to see how that holds, but that’s a level that I’d be watching as well. Remember, you get paid to hang on to this pair, so that interest rate differential does help.
AUD/USD Technical Analysis
The Australian dollar initially tried to rally a bit during the early hours on Thursday and then fell again. We are dancing around the 200-day EMA, which, of course, is an indicator that a lot of people will be paying close attention to, right along with the 0.64 level underneath, which is support. If we break down below the 0.64 level, then I think the Aussie falls pretty significantly.
On the other hand, if we break above the 0.65 level, then I think you have the possibility of the market really taking off to the upside, perhaps reaching 0.67. Right now, I think we’re just working off some of the excess froth from that massive bounce previously.
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