USD/JPY, USD/CAD and AUD/USD Forecasts – US Dollar Continues to Fight Others

USD/JPY Technical Analysis

The US dollar has rallied a bit during the early hours here on Wednesday against the Japanese yen as we are threatening the 158 level right along with the 50-day EMA. If we can break above all that, then it opens up a bigger move, but in the short term I think you might be susceptible to pullbacks as there are a lot of questions about the Bank of Japan and whether or not they will intervene yet again.

This market pulling back from here has a hard floor at the 156 level, assuming we even get down there. The interest rate differential continues to pay you to hold dollars.

USD/CAD Technical Analysis

The US dollar continues to struggle right around the 1.37 level against the Canadian dollar, where there is also the 50-day EMA. The 50-day EMA is an indicator that has offered a bit of a resistance barrier for a while and I think it is going to take something special to get above there, but interest rates as high as they are eventually will make that happen. The one thing that helps the Canadian dollar at least is oil, but let’s be honest, the oil markets don’t influence this particular pair like they once did.

AUD/USD Technical Analysis

The Australian dollar is somewhat sideways during the early part of the Wednesday session as we continue to look for some type of momentum. I think a pullback from here opens up the possibility of a move down to the 0.7150 level, but even that I think is a buying opportunity.

Keep in mind that the Reserve Bank of Australia has, in fact, recently raised rates, something that most central banks haven’t done, so that puts a little bit of a floor in the Aussie anyway. As we get closer to the end of the week we’ll be focused on jobs in America, so that might be your next volatile headline.

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