USD/JPY
The US dollar rallied during the day on Wednesday but found the ¥113 level to be far too resistive to continue going higher. In fact, we are starting to form a shooting star, and I think that if we can break down below the bottom of the range for the day, the market will more than likely go looking towards the ¥112 level underneath which shows a bit of demand. Beyond that, the 111 level also has massive demand. I believe that there is a significant amount of resistance extending to the ¥114.50 level. This is a market that continues to be very bullish overall, but we need to pull back to pick up a bit of momentum in what has been a very significant move.
NZD/USD
The New Zealand dollar fell during the day on Wednesday but reached significant support at the 0.7650 level. By doing so, we turned around of form a hammer, and it should be noted that perhaps we are starting to see some demand underneath. The 0.67 level underneath looks to be a bit of a “bottom” in the big picture, and I think we could go looking towards the 0.6850 level. If we can break above that level, the market probably goes looking towards the 0.70 level after that. Otherwise, if we were to break down below the 0.67 handle, the market probably opens up down to the 0.65 handle. However, I believe that the US dollar probably has limited strength, at least in the short term. This is a marketplace that continues to be very noisy, but I think it’s only a matter of time before value hunters come back in and pick up value.
