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US$ Weakens post FOMC: AUDUSD Aims Higher and USDJPY Lower

Technical Analysis

The US Currency suffered notable losses after the FOMC Meeting on Wednesday 16the March, with notable losses against G10 currencies.

Here we look at the re-energizing AUDUSD bull trend and the risk of a more bearish USDJPY theme resurfacing.

AUDUSD

A dip and firm bounce Wednesday through the FOMC announcement from within our .7425/06 support area (from .7411) to probe above .7528 resistance, to end the very near term corrective recovery theme and switch to an upside bias for Thursday.

For Thursday/ Friday:

  • We see an upside bias for the recent peak at .7593; break here aims for .7625, maybe .7653.
  • But below .7411/06 opens risk down to .7388, maybe .7338/18 which we would look to try to hold.

Short/ Intermediate-term Outlook – Upside Risks: The break above .7243 set a bull theme.

  • We see a positive tone with the bullish threat to .7653.
  • Above here targets .7738, .7849 and .8000.

What Changes This? Below .7106 signals a neutral tone, only shifting negative below .6971.

Read more technical analysis of currency pairs

Daily AUDUSD Chart

AUDUSD

USDJPY

Another rebound failure Wednesday, still unable to build on the  Friday recovery effort lower again from ahead of 114.14, 114.55 and key 114.88 resistances (from 113.82), to again leave the risks lower for Thursday.

For Thursday/ Friday:

  • We see a downside bias through 112.62/59; break here aims for the key 112.20/112.13/111.95 area and maybe closer to critical 111.03/110.97
  • But above 113.82 opens risk up to 114.14, 114.44/55 and maybe critical 114.88, which we would look to try to cap.

Short/ Intermediate-term Outlook – Downside Risks:

  • We see a negative tone with the bearish threat to 110.33/00.
  • Below here targets 106.65/12.

What Changes This? Above 114.88 signals a neutral tone, only shifting positive above 117.53.

Daily USDJPY Chart

USDJPY

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