USD/JPY
The US Dollar has gone back and forth against the Japanese Yen during the trading session on Monday, essentially stalling at the 113.50 level. By doing so, it suggests that we are probably going to find a bit of trouble in this area. Longer-term, I believe that the market will probably make its move to the upside, but we are clearly not ready to do so yet. Pullbacks from here will probably find support near the 112 level, which has been important in the past. In general, I believe that the market will continue to be very noisy and probably offer a lot of back and forth trading opportunities. As far as the longer-term trades are concerned, I think that it will probably continue to be difficult to jump in with both feet, and I would add slowly as we move higher.
AUD/USD
The Australian Dollar fell during the trading session on Monday, reaching towards the 0.7825 level. Ultimately, I believe that the market will break out to the upside, but the 0.79 level above will offer a bit of resistance. A break above there almost undoubtedly sends the Australian dollar to the 0.80 level. I think at this point, short-term pullbacks will probably offer buying opportunities, and you should be paying attention to the gold markets as the 2 are so heavily interconnected. That gives us an opportunity to get an idea as to where gold and the Aussie will go, but also shows us just how soft the US dollar might be going forward. I think that the US dollar is gaining over the last 24 hours due to an oversold condition more than anything else. I fully and utterly believe that this market will start to rally eventually.