USD/JPY
The US dollar went back and forth against the Japanese yen during the day on Tuesday, hovering around the 110 handle. That, of course, makes sense given that the markets are awaiting the statement after the Federal Reserve interest rate. This, of course, is going to be a very volatile market, so I think looking at the longer-term charts are probably about as good as is going to get. Ultimately, the market should bounce off of the 110 level if the Federal Reserve looks very likely to continue to raise interest rates that should only supercharge this. I believe at that point the market will go hunting for the 112 level. If we do breakout from here, the next massive support level is probably the 108 handle. Ultimately, this is a market that continues to be volatile but I do think that the longer-term impulsive moved to the upside is what the market is focusing on.
AUD/USD
The Australian dollar went back and forth during the day on Tuesday, testing the 0.7550 level above. Ultimately, this is a market that ended up forming a shooting star and I think we are waiting for the announcement. The 0.75 level underneath is massively supportive, and I believe that a supportive candle in that area is a buying opportunity just as a break above the top of the range for the day would be. I anticipate that the Australian dollar is struggling due to uncertainty when it comes to the statement, but given enough time I would anticipate that the bullish pressure would continue. Pay attention to gold, because of it can rally it more than likely will continue to pull this market to the upside. In the way, this is a market that I think is going to be volatile, so small position sizing might be prudent.
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