- The Australian dollar has initially rallied during the trading session, breaking all the way towards the 94 yen level before collapsing and showing hesitation yet again.
- This is a market that I think will continue to be very noisy because nobody really knows what they want to do.
- There have been a lot of chaotic moves driven by tariff-related headlines—particularly after Asian trading reacted to news that a lower U.S. trade court had blocked the latest tariffs. However, the decision has since been appealed to the Supreme Court, which is likely to note that the president has previously imposed tariffs on other countries, making this more of a procedural issue.
- So this is more of a procedural issue. And of course, foreign traders jumped in and celebrated because they clearly don’t know how things work in America, and they shouldn’t.
Americans Sold
So, with that being the case, we’ve since then had the Americans coming back into the markets and selling things off. Furthermore, we also have to look at this through the prism of GDP in America coming in lower than anticipated, then it has a risk off flavor. We are trying to bounce a little bit in some of the equity markets since then, but this pair obviously is pretty far out on the risk spectrum.
So, I think it probably remains supported at the 92 yen level. But right now, you’re to have to be very patient if you want to get long of this pair. If you break down below the 92 yen level, then you could see the market drop down to the 90 yen level after that. But I do think we are trying to turn things around for more of an uptrend. It’s going to be very noisy. It’s going to be very difficult. But a lot of patience here would pay off.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.