It is hard to imagine as of Wednesday morning we were still in the midest of the reflation trade with commodities rebounding, equities hoilding up and bond yeilds rising. All of that has reversed course and risk aversion has the market by the throat once again. Oil price are below $40 after flirting with $50, T-bills are approaching zero again through the 3 month maturity and stocks are giving back a portion of recent gains, though thankfully the losses are modest so far.
So not chase risk aversion trades to the downside as volatility remains very high. Keep powder dry and let prices come to you. 124.00 looks like a good area to set fresh EUR/JPY shorts in the near-term.
