They are joined at the hip again. As US equities give up their afternoon gains, EUR/JPY has turned southas well. The correlation loosened for a time this afternoon as EUR/JPY held firm despite soggy stocks for most of the session but firmed up again as both stocks and the cross jumped around 3:00 PM. Flows are light and liquidity thin with many sidelined ahead of the weekend G20 meeting. Few expect significant action to come from this weekends gathering but better safe than sorry is the motto.
Very modest support comes in on the short-term charts around the 123.05/15 area but we wouldn’t bet the ranch on that level. 125.00/05 is first resistance on rebounds.
