Not a very big call in that we spend most sessions consolidating what went on overnight.
Sterling was the volatile one again overnight with cable up and down inside a 200 pip range- 1.6170/1.6370. I doubt very much if Asia will threaten either side of this range but I do retain a definite bearish bias for the GBP against all other majors
EUR and AUD followed the GBP around the place, just to a lesser degree. I have a bearish bias for EUR/USD but I’m not convinced that it’s about to fall off a cliff. Very solid technical support at 1.4620/30 remains the short term target. I am still short AUD/USD and the possibility of a H&S forming has strengthened the bearish technical picture.
The JPY is the great unknown but overall price action suggests to me that further losses for the JPY crosses (JPY gains) are around the corner. The big driver of this is likely to be repatriation of foreign assets back to Japan. Next support in USD/JPY is at 87.10 and resistance is at 88.40. Solid EUR/JPY support is at 127 and little in the way of resistance until 135 so we can expect some major volatility there over the coming weeks.
Good luck today.
