AUD/USD, NZD/USD and USD/JPY Forecasts – US Dollar Drifts Lower in Asia

AUD/USD Technical Analysis

The Australian dollar is a little bit positive during the early part of the Monday session as we continue to see a lot of noisy behavior. But really, at this point in time, I think this is a situation where traders continue to just look at the latest headlines coming out of the Middle East. And as things stand right now, it looks very much like a market that is trying to jump on the idea that perhaps peace is a little closer than they thought.

But really, I don’t know. We’ve seen this before. I do think there is a situation where the market could go looking towards the highs again. I think that does make a certain amount of sense due to the fact that this is a market that’s been bullish for so long anyways. I like buying dips in the Aussie dollar. The Reserve Bank of Australia continues to be 1 of the more hawkish central banks, so I’m positive here.

NZD/USD Technical Analysis

The New Zealand dollar initially pulled back a little bit during the trading session, but it has turned right back around to show signs of life. With that being the case, this is a market that I think will try to look for a move to the 0.5950 level. But again, it comes down to whether or not we can actually get real peace, I think, in the Middle East. We keep getting kind of jerked around by the headlines and the words that maybe something is coming, but then it doesn’t. So right now, I think we’re leaning to the upside, but I would not get married to the long here.

USD/JPY Technical Analysis

The US dollar initially gapped lower against the Japanese yen, but you can see it did turn around a little bit to show some strength. And with this, you could be looking at a move to the 159.5-yen level, possibly even higher than that.

The 160-yen level, of course, is an area that we’ve seen the Bank of Japan intervene, so be prepared for that. But I do think it’s probably only a matter of time before we have to at least determine whether or not we can finally break out above there. Short-term pullbacks I think see plenty of support near the 158-yen level as well.

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