Luckily I got stopped out of my long EUR/JPY strategy yesterday at 131.40 with only a minor black eye and we live to fight another day. I have believed for some time now that USD/JPY is in a 92/102 holding range and I’m not about to start getting bearish at the bottom. But that doesn’t mean that we don’t, in true USD/JPY fashion, spend a few weeks down at these levels. (The break below the double-bottom neckline at 94.60 will have caused a lot of technical selling. Chart to come). If in the meantime the AUD/USD and cable continue to head lower, then of course we can see the JPY crosses lower.
In the present market phases I see levels around 1.34 in the EUR/USD, .7250 in the AUD/USD and 1.50 in the cable as being cheap. Whether we quite see these levels or not remains to be seen but I am not willing to call a base in any of them at current levels. I hope to look for short term market spikes and dips which give me the chance to get in and out for 150 pips. Looks like we are back in interesting time.
