It’s up at 133.50 from around 133.00 when I started.  Talk of major French bank having been notable buyer of the cross in this latest leg up.

Anybody have any idea of the catalyst for the GBP/USD purge today. Save the macro “UK debt burden” stuff, I’m looking for a fresh input that suddenly blasted the cross.

I get the fact that the JPY is strong across the board, too.

I’m stumped…

1.5100 has just broken after cable pressure that had already helped GBP/JPY to ease some 60 pips.

A test of 1.5050/60, important support looks very possible

Cable is trying to steady after a fairly heavy sell-off.  We’re presently at 1.5385 from session low 1.5375.  Source earlier noted buy orders lined up at 1.5360/80.  Cable hasn’t been helped by generally heightened risk aversion, european stocks following their Asian counterparts lower with oil, gold trading easier etc etc.

Reports a US bank has been a particularly aggressive seller of GBP/JPY this morning.  The cross is presently down at 144.20 from early 145.00.

Cable and sterling in general are having a better day. Cable up at 1.4930 from early 1.4860, while GBP/JPY up at 137.30 from around 136.80, EUR/GBP down at .8925 from around .8945.

Earlier news that Dubai government will support Dubai World’s debt restructuring with $9.5 bln funding will be one factor at play here, given UK banks exposure to the company.

Asian sovereign buying of cable has been noted this morning.

Cable tripped small stops below 1.5000 in the wake of  weaker than expected UK inflation/mortgage loan data reaching session low of 1.4987 before recovering.  We’re presently at 1.5010.

 Cable came under pressure early today with UK clearer, sovereign sales noted.  A UK clearer has also been notable buyer of the EUR/GBP cross this morning. It’s presently up at .9005 from early .8985. 

Also talk of GBP/JPY fix selling earlier, with talk of more due at the 12:00 GMT fix.  The GBP/JPY cross is down at 135.60 from early 136.10.

About comments made by Japanese PM Hatoyama in parliament. He feels the government needs to take steps against the yen’s recent strength, which he says doesn’t reflect Japan’s economic and industrial conditions (which as we well know are pretty dire) Hatoyama went as far as to suggest joint international action to address the issue.

USD/JPY steady around 90.55, but yen has weakened on major crosses.  EUR/JPY is up at 124.25 from early 124.05, while GBP/JPY up at 136.85 from early 136.45.

US investment house apparently out tipping USD/JPY at 109 by year end.  I’m with those guys (and gals)

Early last week I wrote about a very successful macro trader who has a proprietary technical trading model. He anticipates USD/JPY falling towards 75 in the coming months. His GBP/JPY analysis was even more bearish, in fact it seemed so outlandish that I don’t think I even mentioned it. Perhaps I shouldn’t have been so quick to judge. 

However we may argue with the fundamental outlook, there are still some very credible people in the market who can see big moves happening and we should take their views/analysis into account when taking our trading decisions.

On the day, I prefer the sell-rally strategy and I consider any levels towards 89.80 to be decent entry points.

That would equate with the cable being below 1.5340 and USD/JPY below 89.50, which would mean that both ‘legs’ of the cross would have broken their support levels. If Europe carry on with this ‘risk aversion’ then these stops in GBP/JPY will certainly be in view as of course will be the 120.00 level in EUR/JPY.

The cable rally has accelerated, stops above 1.6250 having been tripped, and we’ve been to session high 1.6275, presently back at 1.6265.

Strong GBP/JPY buying has been noted, with decent demand from UK clearers and Middle Eastern names. The cross is presently up at 146.90 from an early 146.20.

Elsewhere USD/JPY has been as high as 90.50, running into aforementioned sell orders at 90.40/60 and has eased back to 90.35 at writing.

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