USD/JPY Technical Analysis
The US dollar has rallied a bit during the early hours on Monday, breaking above the 200 day EMA, and now it looks like we’re trying to get to the 149 level. This is an area that I think we could be looking at as a major barrier and if we can break the 149 yen level, then 151 yen would be your next target. Short-term pullbacks are probably buying opportunities, but we do have a Bank of Japan meeting here in the next few days, so I’d be very cautious with this pair right now, although I still like the idea of buying.
AUD/USD Technical Analysis
The Australian dollar has fallen pretty significantly against the US dollar, but at this point in time, we are looking at the 50 day EMA sitting just below as well as the bottom of this channel. So, I think you’ve got a situation where the buyers may come back sooner or later, not necessarily right away, but if the pattern holds, we’re just simply going to test the lower part of the channel and see yet another bounce. I don’t really like shorting this pair until we get below the 200 day EMA, but truthfully buying it is a bit torturous as well. It’s just grinding ever so slowly higher.
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