I didn’t think my headline on this morning’s open would be so prescient, but unfortunately in this FX market you just gotta figure out where the stops are and that’s where the market heads towards. USD/JPY cynically targeted stops below 81.90 and as soon as they were done, we get a relieving bounce. EUR/USD took out weak stops at 1.3310 earlier and is in the process of targeting the next batch above 1.3340, after which it will probably give up and retrace. AUD/USD will also probably target weak trailing stops above 1.0410. Maybe it’s me but it does seem that this stop-hunting is becoming the market’s primary focus.
(Toshin demand now driving this AUD/JPY rally I’m told)
