EUR/USD is back above 1.29, EUR/JPY is closing in on session high a mere 90 minutes after making a new multi-year low and USD/JPY is 1.5 yen above session lows…crazier price action I can’t remember. What happened? Not sure to be honest. Stock turned around 5% in the last hour, helping matters, and the market did seem to finally get itself short the JPY crosses. Look for a bigger short-covering bounce if EUR/JPY takes out the session high at 126.25.
The one thing we can guarantee, and we can’t guarantee much, is that liquidity will be horrible tonight and all day tomorrow as traders try and stay on the sidelines to avoid being repeatedly whipsawed throughout the day.
