Sorry to burst the momentum bubble after some big moves in Europe and NY but I expect Asia to do it’s usual thing, book some profits and then consolidate the overnight moves. EUR/JPY continues to head towards the bottom of its 125/135 consolidation range. The short term outlook is still bearish but we need to be more selective now on our entry levels. USD/JPY is also heading towards the bottom of its 92/102 consolidation and I am very wary of getting caught short towards the base. EUR/USD was heavily overbought in the short-term timeframe and has fallen back from overnight highs. 1.3540 is where all the stops are placed and Sovereign bids are still expected at 1.3560. If they decide to pull their bid, they will pick EUR up 100 pips cheaper in very quick time!
Good luck today.
