Lot of volatility in EUR/JPY so keep positions manageable
- After opening 150 pips higher than its NY closing level, EUR/JPY dipped 60 pips in about 10 minutes and has now recovered 1/2 of that fall:
- EUR/USD has broken above resistance at 1.3170 and has scope for further gains now towards 1.3250:
- USD/JPY is choppy, either side of the previous 84.15 highs:
- Market is very short of yen, especially the big speculative players:
- My conclusion: The move higher in USD/JPY is reaching ‘silly’ status and is ripe for a very sharp downside clean-out. Maybe not in Asian trade, but during the next few sessions.