Looking ahead to today’s Asian session
There is a lot of data set to be released this evening during tonight’s Asian session.
There is the interest statement form the Bank of Japan. There is some talk of the BOJ raising rates but this would be a break from the current approach which has been to keep the Yen low. On the other side of the argument, there are a number of reasons that the BOJ could look to for a rate hike. Two reasons would be the strong Nikkei and to discourage the mass of carry trades. The USD/JPY is currently trading at 117.20, the 117.00 level has been tested and it is near term psychological support. Look for resistance on the USD/JPY at 117.50-117.55.
The other possible play during the Asian session would be the AUD/USD. The aussie has been consolidating on the both the 30 and 60 minute charts. The Employment Change and Unemployment Rate release should have an impact on whether the aussie breaks up through the 0.9000 ceiling or whether we see a breakdown through the support of the triangle pattern that has formed on the short term intraday charts. The AUD/USD is current trading at 0.8990 as there is still selling pressure between 0.9000 and 0.9034.
Raghee Horner is a private forex, futures, and stock trader based in South Florida. She is the author of two best-selling forex trading books and a sought after speaker. All charts we used with permission from Autochartist. For a 21-day trial of Autochartist chart pattern recognition software, visit www.autochartist.com.