Want a short-term rally in EUR/JPY? Trot out a fresh dollop of stimulus ($900 bln is now being bandied about..) and propose more measures for the banks. More signs that a bad bank structure will be employed in the US are helping push up equity prices this morning and taking EUR/JPY up as well. We’ve seen this reaction countless times in recent months, but once the US opens, they rallies begun in Asia always seem to fade.
1.3315 is the session high thus far, and is being challenged early this morning. Yesterday’s 1.3358 spike high, followed by 1.3380 from MLK day are the topside hurdles near-term.
