USD/JPY, USD/CAD and AUD/USD Forecasts – US Dollar Rising in Early Friday Trading

USD/JPY Technical Analysis

The US dollar has rallied quite nicely during the trading session here early on Friday against the Japanese yen as the 158-yen level has offered a bit of support.

The 160-yen level above is a significant barrier and if we can break above there, then I think this could open up a longer-term buy and hold scenario in this pair as it would continue to favor the interest rate differential being paid at the end of the day for the holder of a long position.

It’s also an area that has been massive resistance going back to 1990. So, this is a chart I’m still watching very closely.

USD/CAD Technical Analysis

The US dollar has pulled back just a bit against the Canadian dollar during the trading session on Friday as the 1.3750 level continues to look very resistant. If we can break above there then the market could go looking at the 200-day EMA.

The 200-day EMA is an indicator that a lot of people will be watching to determine the trend, but as things are now, we are hanging around in a 200-pip range, maybe a 250-pip range, as we have been bottoming for a while.

All things being equal, this is a market that I think is going to continue to favor the US dollar for not only a safety bid but the fact that we also get paid a positive swap. So, with that being the case, I am bullish, but I also recognize that it is going to be noisy move along the way.

AUD/USD Technical Analysis

The Australian dollar continues to be noisy. I think at this juncture we are just simply consolidating in a range. The 0.6950 level underneath is support, with the 50-day EMA and the 0.7150 level above is significant resistance.

If we can break out above the 0.7150 level, that would be a very bullish sign and that would make a certain amount of sense considering that the Reserve Bank of Australia has just raised rates and we also have to keep in mind that commodities are racing higher, so that gives us a little bit of an impetus to continue to the upside.

If we were to break down below the 0.69 level, that would be a run to safety, and you would probably see the US dollar rally against everything.