In this video, the Trader Guy looks at the currency pairs USD/JPY and AUD/USD for the July 22nd session.
USD/JPY — We had a very negative candle for the Thursday session, typically would have me thinking to sell. There exists so much in the way of noise at about 105.00. So, it is only a matter of time, before we get a supportive candle that we need to start buying and perhaps head towards 108.00 and 110.00. The reason I say is due to Bank of Japan is starting to lose its sense of humor about the strengthening of yen. Now I just need a supportive candle in order to take advantage of what I think is a nice value based pullback.
AUD/USD — The Australian dollar had a bit of a bounce and we struggled at 0.7500 above, at the end of the day. If we can clear that, then it is a bullish sign. It is a large round number that attracts a lot of trades. At that point I think we probably target the 0.7650 level. A breakdown below the bottom of these candles could get us down to the 0.7300 level. However, it is full of little micro levels to cause short-term bounces. It is not going to be easy to short this pair. So, quite frankly, I prefer to see this rise, especially if it coincides with Gold markets. The one negative thing that I would worry about though is the Reserve Bank of New Zealand has suggested that perhaps they will cut rates sometime in the future. If they do, then it will have a knock on effect in this pair.