Looks like the market found itself in the right church but wrong pew. The risk resumption trade was unable to sustain itself for more than a few minutes after the US employment report provided no surprises and profit-taking quickly overwhelmed the market. Looks like we have some backing and filling to do to consolidate the gins of recent sessions but further upside looks like it will be tough to come by today.
Look for EUR/JPY selling on rallies for the balance of the session after the failure to sustain the break of 135.00. Support at 133.15 is crucial now as a break would signal a medium-term top for the cross is in place and a slide to 131.15 (measured move off double tops at 135.00.
