EUR/JPY: Going nowhere fast
I was quite bullish this morning, and in fact I still think that the long trade is the correct play, but I’ve been wrong before and there has been very little movement at all today.
It’s quite possible that we see another test of 99.70 in early European trade but I think it’s an excellent risk-reward play to buy that dip with a tight-ish stop below 99.40. My reasoning is that the market is very bearish and already short of EUR heading into the Spanish risk events later tonight. Then there is also the aggressive comments from the BOJ overnight which seemed to say that further measures (easing, intervention?) are not far away.