The line-in-the-sand in USD/JPY at 83.00 is very close and even though there was a marginal break overnight, the market has managed to close above it. Market chatter suggests that the stops below 82.80 are huge and if the BOJ aren’t spotted over the next week then we’ll probably be challenging 80.00.
AUD/USD has made a remarkable turnaround since the post RBA sell-off and .9750 is the big level to watch here with option protection and large stops above. With gold and commodity prices roaring ahead and the USD remaining friendless, it is probably only a matter of a short time before the break higher occurs.
EUR/USD is also closing in on important technical resistance around 1.3900, a major 61.8% retracement level and the 200-week MA. If this current bull move can motor straight through strong resistance levels such as this then we really are in a formidable trend.
Good luck today.
