- EUR/JPY had a ‘smell’ about it all day yesterday and whilst I didn’t expect such a big sell-off, I’m certainly not surprised. The Pennant formation I’ve been following has broken to the downside to I think I can now disregard this. Overall the trend remains bullish so wait for the panic selling to pass and then look to start re-building longs.
- EUR/CHF had been itching to trigger those stops below 1.2250 and now that they are done I think the way is open for the up-trend to re-commence.
- EUR/GBP was overbought on the back of news which had been expected anyway, so its little surprise to see a decent sized pullback there.
If EUR/USD can hold above 1.3050/60 and if USD/JPY support near 92.00 is confirmed, then we may see an excellent bullish entry level in the cross. (Edit: Forget about that idea, USD/JPY support has been blown away).
Good luck today.