AUD/JPY will open the week at a very important level

The inverted head and shoulders (see chart) on the short-term charts has a right shoulder at 90.00 and that is exactly where the market closed last week. If this level can hold (and I hope it can as I’m long), then we should see a sharp rally. On the other hand, there could be tight stops just below there in thin Monday early-Asian markets but they will probably all be done and dusted before the retail market opens.

USD/JPY should find strong support at 93.40/50, which was the launch level immediately after the big BOJ announcements at the April meeting. AUD/USD actually looks and feels a bit heavy, so if AUD/JPY is to race higher then is will probably be via the USD/JPY leg.

EUR/USD started to feel a bit heavy towards 1.34 so we may get some snail-paced range trading between 1.32/1.34.