The Dow has reversed a 350 point intraday loss and now trades up nearly 50 points. EUR/JPY is rallying but the bounce began well before stocks turned decisively higher. With Any luck the thundering bottom put in on the charts yesterday will prompt deeper covering ahead of the weekend. One hopeful sign for stocks is the end of the hedge fund redemption period tomorrow: Hopes are that redemption notices have already been received and acted upon.
EUR/JPY eyes yesterday’s late highs at 126.00. It trades now at 124.75. Heavy USD/JPY offers are feared around 98.00/10, a level which capped rallies overnight.
