The effects of the global financial crisis in the FX market were exacerbated by excessive leverage and the carry trade. The market got itself hugely long in pairs like GBP/JPY and AUD/JPY and it now looks like it wants to do the same thing again. The high overnight in a surging GBP/JPY was 161.75 and the next major level to watch is the June high at 162.55. EUR/JPY also surged overnight and has its sights set on its June high at 139.20.
Good luck today.
