JPY weakness accelerates, GBP bulls blink

  • The medium-term sideways movement in USD/JPY looks to have been broken in favour of the bulls. I’m certainly not going to start buying it here but I’m not going to sell it either. Perhaps look for pull-backs towards 104.25 to consider entering long positions.
  • The Yen crosses also look bullish and AUD/JPY looks likely to test the top of a bullish channel near 99.00.
  • AUD/USD has held up reasonably well and last weeks support line near .9270 is still holding.
  • GBP was the other big loser with long positions spooked by close-call polls regarding the Scottish independence vote.
  • EUR/GBP shorts are at very extreme levels and if this starts unwinding it will take a few weeks to run.

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