USD/JPY, AUD/USD and NZD/USD Price Forecast Today: Yen, Aussie and NZD Technical Analysis (Jan 26)

USD/JPY Technical Analysis

The US Dollar has plunged against the Japanese Yen in early trading on Monday, but at this point in time, the market seems to be in a scenario where we are just hanging around trying to figure out if there are real legs to US Dollar weakness or if this is a pullback that we buy into.

The interest rate differential still favors the United States dollar and although there are a lot of questions about coordinated intervention with the yen, I don’t know that we know that it has really kind of been a longer-term outlook type situation or if it was just a short-term slowing down the momentum.

Supposedly, on Friday, the Federal Reserve Bank of New York conducted rate checks, which most market participants looked at as a joint US-Japan effort to arrest the yen depreciation. The reality, though, is that most of the time this happens, the market flies right in the face of it, given enough time. So, I’m looking forward to buying, but we need to recapture 155 yen again.

AUD/USD Technical Analysis

The Australian dollar gapped higher but is starting to stall a bit. I do think as we’re pretty close to the 0.6950 level we might get a little bit of a pullback, but that pullback I believe ends up offering a nice buying opportunity.

I do think the Aussie dollar is going to outperform other currencies against the US dollar mainly due to the fact that the RBA is likely to raise rates fairly soon. So, with that being said, I think you have a situation where you’re looking to find cheap Aussie dollars when you get the opportunity.

NZD/USD Technical Analysis

Finally, with the New Zealand dollar, it looks like we are stretching a bit higher, but let’s keep things in perspective here. The 0.60 level I think continues to be important and a lot of people will be watching that area.

There is a huge cluster of noise here, so I think a pullback makes more sense than not. Quite frankly, if we do start to see US dollar strength, this might be a short eventually. As things stand right now, I don’t know that I love that idea, but I certainly wouldn’t chase the New Zealand dollar all the way up here.

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