Quick look at EUR/USD and USD/JPY
- USD/JPY is still holding up well despite huge offers at 80.00 and trailing stops building below 79.50. The hedge fund market is aggressively buying but it remains to be seen whether they have the patience or firepower to take it higher. The Yen crosses will be most impacted by AUD/JPY around the time of the CPI number. The easiest trade opportunity seems to be, wait for market to take out all the sell orders above 80.00 in USD/JPY and when everyone is full and bloated, sell for the inevitable dip.
- EUR/USD will be mainly impacted later today by developments in the German Bundestag when ECB Chief Mario Draghi speaks before the House. In the meantime I expect tight range trading to prevail between 1.2950/1.3020.