The markets are pausing for breath across the board after a very sharp rally in the wake of upbeat earnings reports and a further uptick in US home sales. The S&P 500 is consolidating gains, up 2.1% at writing, now at the highest levels for 2009.
EUR/USD ran out of steam just shy of the 1.43 level. A barrier options is rumored to be struck at that level. Same story in USD/JPY where a 95.00 barrier is rumored. Offers from Japanese exporters are rumored as well, especially from car-makers.
Look for several hours of range trade between 1.4250 and 1.4290 with the potential for a late session move in one-direction or the other dpending on the equity markets.
