There is a large Japanese interest to sell AUD/USD around .7800 and this seems to be capping the market for the moment. We believe that the orders will be staggered so that once this level is filled the next level will be close to .7900.
Elsewhere, USD/CHF and USD/CAD have broken below important technical support and will struggle to make major gains from current levels I would think. Cable has hit it’s volatile phase as can be seen by price action in early London. Overall I expect EUR/USD to trade in a 1.36/1.42 bullish formation but anything towards 1.40 will probably be worth selling on the day.
The JPY should hopefully see some volatility from todays’ release of the cabinet office’s economic outlook. A modest raise in expectations is already written into the market.
Good luck today.
