EUR crosses/JPY crosses

EUR/JPY: Look to last Friday’s ‘surge’ level for support

Last Friday during Asian trade we had an unexpected move higher in EUR/JPY when a surge of buying from 106.50 moved the market sharply higher. I’m still not entirely sure what drove these flows but in my experience, these levels are usually worth watching closely.

  1. I really want to get involved in long EUR/JPY ahead of the Elections and Abe win, i am concerned about the NFP and FOMC. Weak NFP will lead to likely weak FOMC in a double banger for USD/JPY but EUR/USD should counter higher ok. i think we see a Y108 we might not see a Y107 in 2013.

  2. Be careful with that plan,Tony. The Yen pairs will probably have a classic ‘buy the rumour, sell the fact’ reaction on Abe’s win. In fact, I’m betting on that behaviour. I will close all JPY shorts on the day of the election, or just before and go short when the result is clear.

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