In both equities and risk-aversion plays like EUR/JPY, there has been tons of money made buying weakness and selling strength. We’ve had about 12 false dawns in the last two months and what we’re seeing today could be another. Big bank bailouts have paid diminishing returns in the post while the appointment of a number of well-known entities to Obama economic team is unlikely to pay immediate dividends (though they could well turn water into wine).
Close your eyes and sell a break above the 1.2965 level with a stop above 1.3125 in EUR/USD and/or 126.00 with a stop above 128.50. Buy them back toward 1.25 or 120, respectively.
