Presently we are seeing some severe risk-aversion amongst the major FX pairs whilst the EMs are getting smashed but once the panic dies down, the market is likely to ask itself whether it really wants to be long JPY or not? I’m guessing that the answer will be No, and with trendline support near 128.75 I think EUR/JPY is worth watching for signs of bottoming. Patience required on this one but definitely worth following closely.
