With the Nikkei expected to open higher, dealers are happy to buy the JPY crosses in expectation of further gains. Order books are a mixed bag of stops and sell orders in EUR/JPY until we get close to 131.50/132.00 when the sell orders get a lot heavier. EUR/USD is back above 1.40 and cable is headed towards 1.6300 again, a sterling recovery one could say.
I’m joining in with Saferanger’s trading strategy and I’m going to sell into cable strength. I’m looking to build a short position between 1.6300/1.6450 for an initial move to 1.56 and ultimately a re-test of levels below 1.50.
