USD/JPY
The USD/JPY pair initially tried to rally during the day on Tuesday, but turn right back around as the 105 level has offered way too much in the way of resistance. Having said that, I think there is a significant amount of support below, extending all the way down to the 103 level, as there is so much noise between here and there. Yes, this is a very negative candle, but the overall selloff when it comes to the US dollar is a bit overdone now, so loose as far as I can tell. With that being the case am waiting to see whether or not we get a supportive candle that we can start buying as there is so much positivity below. With this being the case, I am simply waiting for stability and forth.
AUD/USD
The Australian dollar rally during the course of the session on Tuesday, breaking higher in reaching towards the 0.77 level. With that being the case it seems as if the market is trying to pull back in order to build up enough momentum to finally break out to the upside. The 0.77 level above begins quite a bit of resistance all the way to the 0.7750 level. A break above there would be a very strong sign, and more of a longer-term “buy-and-hold” type of situation. The candle held most of the gains, so this point in time I do believe that the buyers return again and again as markets continue to try to break out to the upside. Also, you can one of the gold markets are looking fairly strong at the moment as well, and that of course is influential when it comes to the Australian dollar in general. There should continue to be buyers in this market given enough time, and as a result I don’t have any real interest in selling at this point.