The rest of the reflation trades have gone to hell in a hand-basket but EUR/JPY is holding its own. It shot through the 61.8% retracement of the 138.60/127.00 decline after payrolls and has been consolidating just below that level (134.17) for most of the post-employment session. A sustained break above that level should turn the focus back toward the 138.50/60 region in the weeks ahead.
EUR/JPY has been range-bound for most of 2009, look to trade this pair opportunistically, if at all. I sure would not marry any positions in this one.
