It was really only a matter of time before the big stops above 1.3325 were triggered and now they’ve been done. Friday is normally risk-off in Asia but whether risk-off means selling JPY crosses or more covering of existing short positions, that remains to be seen. If the Sovereigns continue to buy EUR/JPY, like we reported yesterday, then I think I’ll bet on the latter.
RBA Governor Stevens will be giving a speech very shortly.
Good luck today and TGIF.
