CCY Corner: USDJPY - AUDJPY Cross Trade Strategy

The more positive tone coming from Fed Chair Janet Yellen have proven to be a hawkish sign for the USD as the Fed would still raise rates this 2015. However, implying that the markets would be 'choppy' is being noted by other analyst as to how an economist would stand on an assumption that stock market price behavior would take place even before any rate increase can be made. 

A better than expected reading on inflation have proven to be an initiative that the Fed's expected action takes place in the order it sees fit. Thus this would still be positive influence for the interim trend with the US Dollar, especially opening with a small gap basis point from Friday's closing @96.10. This was a spill over effect based on a the likelihood of US rate hike with prices in the Asian opening earlier leading a firmer USD. 

Alternate price action other than the European majors have shown its effects with the USDJPY's recent price swing higher to 121.75 but failed to sustain the daily resistance level nearing 122.20 that would trigger trade interest to move higher. The range bound in prices within a similar consolidation period for the USDJPY reflects that it is preparing for a break which tends to follow its primary and interim market trend higher. Although no significant volumes and price momentum have shown that a follow-through would follow within the next few trading days. 

CCY Corner: USD AUD JPY Cross Trade Strategy