USD/JPY Technical Analysis – 150 Level Matters
The US dollar continues to pick up strength against the Japanese yen after initially pulling back during the trading session on Thursday, as the 200-day EMA continues to be supportive. The question now is whether or not we can cleanly break above the 150 yen level, an area that of course is a large round psychologically significant figure and opens up the possibility of a move to the 152 yen level. In general, this is a market that I think continues to find buyers in each and every dip, mainly because the carry trade of course is going to continue to get you paid.
The Bank of Japan has already admitted that they cannot do anything as far as loosening, I should say tightening monetary policy, and therefore loose monetary policy should continue to be the case going forward. As long as that is the situation, we have a US dollar that will pay you at the end of every day to be involved in this pair and eventually we are going to break out.
AUD/USD Technical Analysis – Aussie Bounces Slightly
The Australian dollar rallied rather significantly from the 200-day EMA during the early part of the session, but the US dollar has strengthened a bit since then. I think at this point we are more likely than not to see some sideways action as the 0.6650 level and the 200-day EMA both offer quite a bit of technical support.
If we were to break down below the 0.6650 level, then we are looking at a move down to the 0.66 level, followed by a move down to the 0.6450 level. On a breakout to the upside, I need to see the 0.6750 level cleared to gain any real confidence in the Aussie.