[ad_1]
USD/JPY Technical Analysis
The US dollar has recovered slightly against the Japanese yen during the early hours. But quite frankly, I think you have to look at this through the prism of a market that is just simply oversold, much like the euro has been overbought. And I think the bounce makes a certain amount of sense. Over the longer term, I anticipate that you have to pay close attention to the 142 yen level because if we break significantly below there, then it’s likely that we would see the market drop to the 140 yen level.
The 145 yen level above, I think, is an area that a lot of people will be watching as it is a large round psychologically significant figure and an area that has been important a couple of times in the past. Anything above there, the dollar probably catches a serious bid.
AUD/USD Technical Analysis
The Australian dollar is overbought against the US dollar and is threatening the 0.64 level, an area that has been a major resistance barrier multiple times in the past and is also backed up by the 200-day EMA. So, I do think you have a scenario where traders are going to be looking at this as a potential short opportunity or maybe just an overbought extension that needs to at least grind away some of this excess froth.
As we head towards Good Friday, momentum will probably drop, liquidity will almost certainly drop. So therefore, I don’t necessarily think that we have a huge buying opportunity. However, if we get a daily close well above the 0.64 level, you have to think that the trend has changed from a longer term standpoint.
For a look at all of today’s economic events, check out our economic calendar.
[ad_2]
