USD/JPY
The USD/JPY pair initially fell on Wednesday, but turned around to form a rather positive candle. However, the market continues to see quite a bit of resistance at the 105 level, so it makes sense that we will have to continue to go back and forth in order to build up the necessary momentum to finally break out. Once we break above the 105 level, I believe that the 107 level will be the next serious target. Alternately, I think that pullbacks will simply offer plenty of buying opportunities based upon signs of support and of course the 100-day exponential moving average just below. The 103 level below is massively supportive as well, so having said that I feel that the market will continue to find buyers, especially considering that the Federal Reserve is likely to raise interest rates towards the end of the year.
AUD/USD
The Australian dollar initially tried to rally during the course of the session, but turn right back around to form a shooting star. The shooting star of course is a very negative sign but I think there is more than enough support below to continue to push higher and higher. After all, the lows keep getting higher and I recognize that the 0.750 level above is resistance. Because of this, it’s likely that the market will continue to try to break above there, and once we do I think that will be a significant move. Ultimately, a pullback will have to deal with plenty of support at various so I don’t really have any interest in selling.
Ultimately, I do think that the Australian dollar goes higher, but you will need some outside help, perhaps the gold market going higher will be what it takes to continue to show bullish pressure. With that being the case, I’m simply waiting to see either the gold or Australian dollar rise so I can go long in this market.
