As we speculated yesterday, the market isn’t happy to buy just one currency, the USD, when its in risk averse mood but will look around for other safe-havens. The obvious alternative is the JPY and we saw USD/JPY and the JPY crosses fall heavily overnight. When the market is in this mood it will take a lot to turn it around so I’m sticking with my bear strategy in AUD/JPY, EUR/JPY and USD/JPY. Selling intraday rallies in EUR/USD, EUR/GBP, and AUD/USD still looks to be most appealing but it will be interesting to see how Tokyo reacts after it’s 3-day holiday.
Good luck today.
