USD/JPY
The US dollar has initially tried to rally during the trading session on Wednesday going into the Federal Reserve meeting but has rolled over to form a bit of a shooting star. I think this is a simple pull back that is waiting to get picked up near the ¥111 level again, and at the first signs of stability or a bounce, I’d be more than willing to start buying again. The alternate scenario is that we break down below the ¥110.50 level, then I think we could go a bit lower at that point. I think as long as the Federal Reserve doesn’t surprise anyone, this market is probably in somewhat of a holding pattern until we get the jobs number on Friday, which of course can move this market quite significantly.
NZD/USD
The New Zealand dollar has fallen during the trading session on Wednesday, failing to break out of the symmetrical triangle I have drawn on the chart. I believe that if we can break above the 0.6850 level, the market will probably make a run towards 0.69, followed very quickly by 0.70. Underneath, I think there is a significant amount of support at the 0.67 level, so that would probably be the target on a break down below the uptrend line. I believe that this market will be very quiet between now and the jobs number, as there’s no real catalyst to send it in either direction, barring some type of shock out of the Federal Reserve, something that almost no one is expecting. With that in mind, employ some type of range bound trading system that benefits from the obvious triangle that I have marked on the chart.