It’s back to the future…economic realities are biting the markets as oil drops to the $60 level, stocks slide another couple hundred points and EUR/JPY shifts into reverse. Central banks have thrown a lot of ammunition at the markets in recent days but the markets still anticipate at least two more quarters of really crappy data after a disastrous fourth quarter of 2008.
Volatility remains high and liquidity scarce, amplifying moves in either direction. EUR/JPY trades ar 125.00, eyeing earlier lows at the 124.25 level. 123.15 is important support below, if 124.25 gives way.
