USD/JPY Uptrend Intact as 161 Yen Support Holds; AUD/NZD at Resistance

The Australian dollar sat at a familiar pivot, 0.6950. That level was previously support and now acts as resistance, Chris noted. The pair was quiet during the session, hovering near the 200-day EMA. A break above 0.6950 would force a bigger decision, he said. For now, the market is waiting.

The New Zealand dollar posted a stronger gain, testing the 0.58 level. That area has historically been both support and resistance, and it also marks the 50% Fibonacci retracement from the June swing high. The 50-day EMA had offered resistance in prior days, leaving the next direction unclear.

Despite New Zealand's recent rate hike, the interest rate differential continues to favor the US dollar, Chris said. The United States still pays more in interest than New Zealand. He is watching for signs of exhaustion in the New Zealand dollar to re-enter dollar longs against the kiwi.