Yesterday it looked like the short JPY-cross trade had finally returned with a vengeance. The presumption in the market is that AUD/JPY, being one of the only carry-trade pairs left, is where the most long positions are parked and therefore should be the pair that falls the most. Wrong- EUR/JPY fell hardest despite the German election result and AUD/JPY has actually finished the day higher. Hard to figure out why but obviously the demand for the AUD remains strong and I suspect that it is real. Resistance for the AUD/USD is at .8800, where there is option activity aplenty.
Good luck today.
