In this video, the Trader Guy looks at the currency pairs, USD/JPY and AUD/USD for the July 8th session.
USD/JPY &mdashp; We did in fact fall during the course of the day on Thursday, but we are still well within the hammer that was formed on Thursday and probably even more importantly, still above the 100.00 level. Now this is an area that the Bank of Japan will probably defend given enough time. So, I feel that even if we get a poor jobs number, we will simply sell this market off. Most traders won’t hang on to the trade for any length of time, will probably cover as they won’t hold that position over the weekend. We have the Bank of Japan stepping in on Monday morning in Asia and that could blow their positions out of the market. So, I think the sell offs could offer buying opportunities. If we break above the top of the hammer, that is also a buying opportunity as well.
AUD/USD — This pair is a little bit different in the sense that we are just simply consolidating and with that being the case, it is kind of difficult to imagine a scenario that this this market could provide an easy trade set up. In the meantime, what we are basically looking at is a simple risk-on, risk-off type of trade and this is one of those deals where if the jobs number is strong, then we should continue to see buyers stepping in and this pair could go higher. But ultimately, if we get a poor number, then we should break down. The Australian dollar is considered to be a risky asset. Now having said all that, I think it is going to be difficult and I think that we need to wait until we get a much more clear signal.
© Prabhu for Forex Videos, 2016. |
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Post tags: AUD/USD, technical analysis, USD/JPY
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