USD/JPY
The US dollar has gone back and forth during the trading session on Tuesday, dancing around the 107 handle. The 108 level above is massive resistance, and if we can break above that level, the market is likely to go higher if we can clear the 108 handle, we might be able to go to the 110-level next. Keep in mind that this pair is sensitive to risk appetite in general, so if the headlines flareup about a potential trade war between the United States and China, that will push this market back around to the downside. However, I think that the 105 level is massive support underneath, and if we break down below there he could have the bottom falling out of this market. More than likely, pullbacks will be buying opportunities to take advantage of, and the noise should continue to be a scenario that people look for.
AUD/USD
The Australian dollar has gone back and forth during the trading session on Tuesday, showing signs of trouble at the 0.78 level. If we can break above that level, then I think the market goes to the 0.79 level. If we pull back from here, I think there’s plenty of support at the 0.7650 level to keep the market afloat. Pay attention to the gold markets, they have their usual influence over here. If we get more of a “risk on” move, that will also work against the value of the US dollar, sending the pair higher. The 0.79 level is going to be difficult to overcome, but once we do I think we will more than likely reach towards the 0.80 level. Short-term pullbacks are buying opportunities, I have no interest in shorting this market as there is a major uptrend line just below.
