There are two big levels which are holding firm in the AUD/USD and NZD respectively- .8475 and .6900. Whatever is happening up there is quite significant and is helping my bear case that both pairs are set for significant 10-15% pullbacks.
USD/JPY, despite it’s inactivity over the last 6 months, looks to me like it might hold the key. If it can hold firm above 91.80 and maintain its range trading mode then it should track higher back towards 100, dragging the JPY crosses higher with it. If it breaks below 91.00 in coming weeks, I think we will see a very large liquidation of all JPY crosses and this could be the trigger to end the ‘risk-on’ trade.
Good luck today.
