With the gloom hanging over Wall Street for much of the last three sessions many had sold EUR/JPY as the proxy for a risk averse parking place. This worked great until a wild short-covering rally broke out on Wall Street late in the session. Talk of BofA making a play for Lehman was the catalyst for the firestorm at the close.
EUR/JPY soared after breaking through important resistance at 149.15/20, trading up to 150.50 at writing. That’s the end of my double top! (Though in self-defense, I did say to stop and reverse above 149.15/20).
