EUR/JPY: Still like 117/120 consolidation range
There is some debate going on as to exactly what was said by the EconMin but the reaction tells us a lot about the state of the market; its short Yen and getting nervous. I tend to think that 120 will now cap EUR/JPY for a few days and that we will see a dip towards 117.50 and possibly even 116.00.
That’s why I like the short CHF/JPY trade so much; if EUR/CHF takes off towards 1.30 then the CHF/JPY cross could be back below 90.00 very quickly indeed. Wishful thinking on my part perhaps, but you gotta have a plan!