USD/JPY, AUD/USD and NZD/USD Forecasts – US Dollar Jumps as Rates in the US Rise

USD/JPY Technical Analysis

The US Dollar has rallied quite nicely against the Japanese Yen during trading on Friday, as we continue to see interest rates climb in America, causing chaos for everything not called the US Dollar. And now that we are above the 158 Yen level, I think you’ve got a real shot at a continuation toward the 160 Yen level.

I recognize short-term pullbacks are likely, and I also recognize that the market will be watching out for Japanese intervention, especially the closer we get to the 160 level.

AUD/USD Technical Analysis

The Australian Dollar has gotten pummeled during trading as we are now testing the 0.7150 level. Keep in mind the 0.71 level is also support, especially now that the 50-day EMA is sitting there. A bit of a bounce from here makes a certain amount of sense, but we need to see yields in America pull back.

If they do not, we may continue to the downside. This is probably a Monday story. I’ll let the day play out, but at this point, I’m looking for value; in other words, I’m looking to come in and buy the dips.

NZD/USD Technical Analysis

The New Zealand Dollar has been crushed and could go down to the 0.58 level. This is a market that, quite frankly, had no business breaking out the way it did to begin with, and now the reality that the interest rate differential is wide enough to drive a truck through comes into play.

If we break down below the 0.58 level, look out below. I think there is an opportunity for a short-term bounce, but that bounce, more likely than not, will see quite a bit of selling pressure if we get anywhere near the 0.59 level.

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