AUTOREFRESH 
GBP weakness, JPY strength, likely to continue
Once a trend gets started in the FX markets it generally takes at least a few weeks to mature. USD/JPY has started to pick up bearish momentum on the successive breaks below important technical support levels at 88.00 and 87.10. The manner in which these breaks occurred suggests to me that there is more to come. I will continue to play the edges of a broad 84/88 range with a definite bearish bias.
With regard to sterling, I think we may be in for a big week or two. If my information is correct, there is some very large selling of GBP by German interests in the UK which will of course involve the buying of EUR. EUR/GBP last night broke above short term resistance at .9140 and I’m looking to trade a short term range of .9100/90, again with a very definite bias, this time bullish.
Good luck today.
I hope yo are right, I am short gbpjpy and looking for a test of 139 area again. What worries me is this news that Dubai is supposedly looking to renegotiate a smaller part of the debt, which obviously caused the earlier rally. I hope I dont wake up to find gbpjpy has shot up 200 pips in asia just on that news.
Evening/morning Sean, I am a long-term sterling bear. But do you know why the ‘german interests’ are choosing to sell now?
Hi DC, anything is possible especially in Asia and msot especially in December. I’d say reduce the position when you’re going to sleep, just in case.
Hi ISCA. Nothing concrete but it may have a lot to do with WestLB and its need to liquidate assets, of which it has many in the UK. That’s an educated guess.
Hot damn! That’s what I like to hear. I heard that, DC. I’m still cautious as well, but sticking with it.
Let us hope seans info is correct and sterling goes to hell, from tonight onwards