AUD/USD, NZD/USD and USD/JPY Forecast – US Dollar Sees Pressure Against Pacific, Japan Waits for BoJ

AUD/USD Technical Analysis

The Australian dollar has taken off to the upside during the trading session on Thursday as the 0.68 level is broken. I think at this point in time, it makes quite a bit of sense that we continue to see this market drive towards the 0.6930 level, as it was a major swing to the upside that brought in a lot of selling.

Recently, we have seen employment numbers coming out of Australia that are stronger than anticipated, and of course, the Reserve Bank of Australia is expected to raise rates. So, this move makes quite a bit of sense. Add in the fact that the Chinese manufacturing numbers have picked up recently, and that is a good sign.

NZD/USD Technical Analysis

The New Zealand dollar is also rising, perhaps for many of the same reasons as we are focusing on the 0.59 level. I do think that we will try to drive towards the 0.60 level.

All things being equal, short-term pullbacks open up the possibility of buying opportunities sitting at the 200-day EMA. Anything below there I think would change my mind, but as things stand right now, the Kiwi dollar looks like it is ready to start driving to the upside again.

USD/JPY Technical Analysis

The US dollar has rallied a bit against the Japanese yen in what would be a bit of an outlier in that region, but keep in mind that the Bank of Japan has an interest rate decision on Friday, and it is expected that they sound a bit more dovish. If that does in fact end up being the case, then it makes sense that the US dollar continues to climb.

The 160 yen level above is my target at the moment and the interest rate differential continues to favor the US dollar and probably will do so for some time. Short-term pullbacks offer buying opportunities with the 158 yen level offering quite a bit of support, followed by the 50-day EMA, but we will have to wait and see how this plays out.

I think it is very noisy and very choppy, but I think there is more of an upward tilt here and a little bit further to go.