USD/JPY
The US dollar skyrocketing against the Japanese yen on Friday, breaking towards the 105 level. This is an area that we have quite a bit of resistance that, due to the fact that a couple of weeks ago we had seen some type of resistance. I believe that there is a massive amount of resistance above the 105 level, and extending all the way to the 106 level. So in other words, even though we have a very bullish candle for the day on Tuesday, it is likely that we may need to pull back in the short-term in order to start buying. After all, the market is now concerned about the Bank of Japan intervening, as I had suggested just a few sessions ago. With this, it looks like we are going to go higher given enough time but a pullback may be needed in order to build up the momentum to break out.
NZD/USD
The New Zealand dollar broke higher during the course of the day on Tuesday as well, breaking to a fresh, new high during the day. With this being the case, I believe that the market will eventually break above the top of the range for the Tuesday session, and then reach towards the 0.75 handle. With this being the case, the market looks very likely to retain a bullish attitude, so therefore think short-term pullback offers white a bit of buying opportunities, and as a result it makes sense that this becomes a “buy only” market.
I believe that the 0.72 level below is support, and that the absolute “floor” in this market is near the 0.70 level. In other words, even if we pullback from here there should be a buying opportunity going forward. A supportive candle is reason enough to go long just as much a break above the top of the range during the course of the range for the day on Tuesday.
