This week we decided to focus on the EUR/JPY and AUD/USD currency pairs. As the Yen strengthened in correlation with other yen crosses, we notice a downtrend forming that could potentially test deeper levels of support in the near future. The AUD/USD pair was also a good choice this week because we reached a new yearly high at the beginning of the week with a quick trend correction. It is important to know that trend corrections are very common in an extremely over-extended market. Therefore, this pair corrected throughout the remainder of the trading week for around 300 pips.

This week we brought back focus to the USD/JPY currency pair as we noticed a bearish breakout formation. The biggest issue with currency pairs having very little movement is that a lot of patience is needed. Nevertheless, this didn’t stop us from collecting pips as the market began to dip. We also noticed the AUD/USD continuing its uptrend and reaching new highs at the end of the week. We will begin to look for this uptrend correction in the next week. The EUR/USD didn’t move to surpass the highs of the previous two-weeks as it still remains in a correctional phase. We’re expecting a breakout to the upside in the next week or so as price action paths the way.

In continuation from the previous week, into a new month, we kept our focus on the EUR/USD and AUD/USD currency pairs for trend continuation. As expected, the EUR/USD began to hold at the support area on Tuesday and the uptrend resumed for the rest of the week. The AUD/USD also resumed its uptrend after the correction last week. Even though we focused on these two currency pairs, we continue to watch for trend corrections and continuations on all majors and crosses.