EUR/JPY continues to hold above the important 97.00 level and this pair will again be the focus in Asian trade. Barrier protection and large stops will ensure that the market stays interested. None of the major pairings have moved since the Asian close yesterday; we must ask ourselves whether the inability of the EUR to fall further despite bearish news on all fronts is a sign of a short-term base and an oversold market? Or whether this is classic consolidation of a strong bear market? I’m sure the next 24 hours will answer that question.
Chinese GDP data in about 4 hours time will be the main event risk.
Good luck today.
