USD/JPY Technical Analysis
The US dollar has fallen against the Japanese yen only to turn around and show signs of life in what is an area that I think you need to look at the top of the ascending triangle as a potential entry. And with that being said, if we can break above the 152 yen level, then I think it opens up the possibility of a much bigger move. A breakdown below the bottom of the trading session for the week could open up a move down to 149 yen, which is an area that’s been support as well. Either way, keep in mind that you get the interest rate differential working in your favor here. And I do think that will be one of those things that people continue to pay close attention to in what has been a very strong move.
AUD/USD Technical Analysis
The Australian dollar initially pulled back just a bit during the trading session here on Thursday, but it looks like the 200 day EMA is going to continue to offer a little bit of support. If we can rally from here, then the 0.6550 level is an area that I think a lot of people will be watching closely. It also features a 50 day EMA. So that is a scenario where we are probably going to test that and then possibly go looking at the 0.66 level.
Signs of exhaustion, I think, show selling opportunities. This is a market that has underperformed against the US dollar, and I think that continues to be the case. So, if the US dollar strengthens, then it’s likely that the Aussie really takes a bit of a beating.
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