USD/JPY
The USD/JPY pair did almost nothing to move the market during the day on Monday. With this, I believe that the market will continue to be very choppy, and perhaps trying to reach down to the 100 level will be what the market does. I think given enough time it will be a market that finds support near the 100 level due to the fact that it was the recent bottom, and of course an area that the Bank of Japan tends to be quite a bit of attention to. They have suggested recently that there might be more quantitative easing coming, and quite frankly it wouldn’t be overly surprising if they got involved in the markets through intervention if we break down below there. Because of this, I believe that it might be a short-term selling opportunity, but quite frankly it’s likely that it is probably much easier to simply wait for supportive candle that we can buy.
AUD/USD
The AUD/USD pair initially tried to rally during the course of the session on Monday, but then fell apart and reached towards the 0.75 level. Because of this, I believe that the market is about to find support in this general vicinity but you have to keep in mind that this particular session is going to be interesting due to the fact that the Reserve Bank of Australia has an interest rate announcement during the course of the day, and that of course can cause quite a bit of volatility. There is a significant amount of support just below, so it’s likely that we could get a bounce but at this point in time it’s probably best to simply sit on the sidelines as we wait for some type of clear direction.
Currently, we are essentially near the 0.75 level which is basically the middle of a consolidative area, but overall I think we are in an uptrend in channel for the longer term. Nonetheless, today is going to give us hints as to where we go next.
