Feeling good about things, or maybe just a little less bad? Buy EUR/JPY! Think it’s all going to hell in a hand basket? Sell EUR/JPY!
Not much new in that strategy but in illiquid markets make the swings that much more dramatic. As S&P futures start to drop more sharply as the open of the cash market approaches, EUR/JPY is on the decline again. Futures are down more than 40 points off of their highs in Asia when the markets briefly rejoiced on the AIG bailout.
