The euro is the laggard this week and the yen led the way
Risk aversion and spiking covid cases in Europe dog EUR/JPY
EUR/JPY is the worst-performer this week, falling all five days and breaking through the September low to the worst levels since July.
Looking at the chart, there's an ugly head-and-shoulders pattern shaping up.
The measured target is near 116.00.
How will be get there? You could certainly see it happening with a contested election but even a divided congress could do it.
Alternatively, a continued jump in covid cases in Europe and elsewhere would undermine the recovery and lead to a flight to the yen.
In short, there are more ways to envision this happening than not.
But be careful out there this week; I expect that far more fortunes will be lost than gained in the next seven days.