In early trading this morning the USD/JPY hit a low around the 134.782 area temporarily, but since touching this ratio the Forex pair has reversed higher. The long term bullish run of the USD/JPY touched values not seen since 1998 recently and speculators may not want to give up on this higher territory quite yet. While the lower move the past handful of days maybe enticing, short term traders need to acknowledge a few considerations.

The USD/JPY was trading near 137.000 on the 29^th of June and this morning’s low was a healthy dose lower with a recorded value of nearly 134.782 as written above previously.  However, traders need to know that U.S financial institutions are on holiday today, and many of the American financial houses began shuttering their doors last Friday. While such a simple reason for a lack of buying from the U.S side may sound too easy, it is often the evident things that prove worthwhile.

Yes, the USD/JPY does look absurdly high and overbought, and speculative traders cannot be blamed for wanting to attempt contrarian positions which sell the USD/JPY. However, the long term trend cannot be merely ignored. Technical traders do have a reason to suspect the Japanese Yen is far too weak and will eventually begin to get stronger and make the USD/JPY move lower, but when this will take place is still an open question.

Short term support levels this morning seemed to cause a bounce higher, producing purchasing of the USD/JPY.  With the absence of the U.S financial institutions until tomorrow, trading conditions are likely to remain choppy over the next twenty four hours. However, upon the return of full market volume to Forex, the USD/JPY is likely to search for equilibrium. If the USD/JPY is languishing below the 135.250 mark as of tomorrow, this may be considered a place to attempt buying positions and search for upside momentum.

The USD/JPY has shown a strong ability to trend and betting against this long term move to suddenly disappear in the near term may prove an expensive wager.  The U.S Federal Reserve is maintaining its hawkish interest rate rhetoric while the Bank of Japan continues to remain dovish. These viewpoints are unlikely to change within the next couple of weeks. Support levels in the near term for the USD/JPY may prove to be intriguing places to ignite buying positions, which seek moves towards technical resistance the next couple of days as speculative wagers.

USD/JPY Short Term Outlook

Current Resistance: 135.610

Current Support: 135.130

High Target: 136.020

Low Target: 134.600

A fall in value early this weekend to new long term depths did put AVAX/USD under 14.0000 briefly, a slight reversal higher has occurred but lows remain in sight.

As of this morning, AVAX/USD is trading near 15.6500, this after being able to reach a high of nearly 16.3400 late on Sunday. Avalanche has suffered a severe fall in value like its major counterparts, but its low water marks on Saturday which went below the 14.0000 still managed to float above prices seen in mid-August and late July of 2021. The broad cryptocurrency market remains extremely fragile, and technically while reversals higher have been achieved in the past half day, lows are clearly within sight and threatening.

AVAX/USD produces fast trading and price velocity has been dangerous the past few days. Speculators brave enough to participate in cryptocurrencies, should certainly use stop loss and take profit orders while engaging in trading. If current support levels of 15.2000 begin to see a flirtation and start to appear vulnerable, speculators may believe that further lows will rapidly be demonstrated. A fall below the 15.1000 mark could stir additional selling in AVAX/USD.

While broad market conditions remain extremely nervous and Avalanche is in sight of long term lows, technical traders may be intrigued that AVAX/USD still has lower depths to explore.  If the bearish trend stays intact and the slight bounce higher produced yesterday and early today fade, AVAX/USD could begin to test lower depths below the 15.0000 which may attract the attention of more bearish speculators.

Yes, AVAX/USD could certainly move higher and reversals upwards should always be expected, because no asset moves in one direction when trading. However, the long term downward trajectory within the cryptocurrency market and Avalanche are self-evident, and betting against this trend should be done only with extreme caution and great risk taking tactics. Being a contrarian under the current market conditions may prove to be extremely dangerous, thus maintaining a selling stance appears to be the logical choice for most traders.

If AVAX/USD does traverse slightly higher and challenges resistance near the 15.7000 to 15.8500 ratios, speculators may want to consider short positions.  If Avalanche cannot maintain a price above the 16.0000 juncture and continues to keep its lower depths within sight, traders may want to prepare for the potential of the lower trajectory to stay in effect. Selling AVAX/USD remains the seemingly worthwhile wager for speculators in the near term.

Avalanche Short-Term Outlook

Current Resistance: 16.09000000

Current Support: 15.18000000

High Target: 17.12000000

Low Target: 13.98000000