The USD/JPY low at 87.11 which Jamie mentioned earlier is the first main obstacle to be overcome this morning. I remain very bearish this pair and if we break below 87 soon, then I expect to see a 7 in front of the rate before Christmas. The price action on the break below 88 last night in early European trade was very enlightening. Despite some very significant bids around 88.00, the market fell like a stone from 88.20 to 87.60 which tells me that the sellers are bigger and more desperate; more losses likely.
USD/CHF has started to pick up momentum and the close below 1.00 is a technically bearish event. Next support is at 98.68, an intra-week low from last year. EUR/USD is targeting the double-top neckline which is at 1.5290.
Good luck today.
