In this video, the Trader Guy looks at the currency pairs USD/JPY and AUD/USD for the October 21st session.
USD/JPY — We rallied a little bit and it looks like the 103.00 level continues to be supportive. I think that the 105.00 level above is resistance. So, we continue to bang around here, trying to build up momentum to break above the 107.00 level. A breakdown below 103.00 could offer quite a bit of support at the 100.00 level. This is a market that I think is trying to build up pressure due to the Bank of Japan. So, if you can handle the volatility, this is definitely a market to be long in.
AUD/USD — We fell apart during the course of the session. You can see that this is exhaustion which is negative sign. The 0.7500 level looks to be supportive. I think this is basically a consolidation area that we continue to bang around. In the short-term, we are going to fall. Sooner or later, the buyers are going to return. We need an impulsive candle one way or the other to continue. If we did break above 0.7750, then we could probably go to 0.8000. Pay attention to Gold market, as it has massive influence on this market. Quite frankly, that's what it takes to get this market to move in one direction or the other.