The fundamental news release really buckled the trend. Anticipation of the Fed rate hike was a disappointment sending the U.S. Dollar tumbling. Why? A rate hike is a sign of economic strength or growth. It is essentially an attempt to slow down the growth by making borrowing more expensive. Higher interest rates also mean more capital inflow, which also drives the USD up. Since Yellen held off on the rate hike hinting at more room to grow. The U.S. economy is struggling to expand due to the low oil prices and high dollar. This news has certainly buckled the trends I have been looking at.
The first is AUDJPY:
Definitely an interesting pair. The bearish dollar indirectly gave this pair a boost. Bearish, bullish, or what? I still considered this pair ranging, Once you go to a long enough time frame (monthly), it has experienced some very wild swings. I guess you can say this pair reversed from the resistance turned support zone, but I was not particularly interested in it simply due to the fact that this zone is quite wide.
As for NZDJPY:
It’s simply a matter of support and resistance zones. It broke through one, but we definitely are seeing a few more zones above that will be tested. I simply drew the highest triple tested zone. As of right now, I am not watching this pair. Currently sticking with USD pairs simply because of the fundamental influences. Any news of the dollar will buck the existing trends.