FXWW News/JPY crosses

Trade of the Day, Thursday October 23rd: Looking to sell EUR/JPY

Markets are still pretty choppy¬†and there don’t seem to be any dominant factors influencing the major currencies.

  • Commodities remain influential, with the oil market still looking nervy (and likely to affect Yen crosses) but Gold trying to form a significant base;
  • Bond markets haven’t had much information to go on and are in holding space (notwithstanding the occasional positional rout);
  • Equity markets have been tottering recently but as long as the Fed, BoJ, ECB etc maintain their policies, stocks are likely to be underpinned.

Both the cable and EUR/USD have had periods of interesting price action in recent sessions and both look bearish to me in the short-term. There is still plenty of optionality at 1.2500 in EUR/USD which will act like a magnet.

USD/JPY has been consolidating but the failure to break significantly higher after the GPIF news at the weekend suggests to me that the market is already long of USD/JPY. I’m also hearing reports of decent selling interest near towards 107.50.

Which leads me to EUR/JPY. I’m trading this pair with a bearish bias and will update levels as the day progresses.

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