On Monday I was 95% certain that we were due for a retracement, yesterday morning I was 100% sure that a major reversal was underway, and this morning I’m not so sure. In the short-term I still definitely favour the sell-rally strategy but I want to be careful about getting caught in the trap of selling (what turn out to be) dips.
I’m looking to trade a volatile 117.25/122.50 range with one proviso, if EUR/USD breaks clearly below 1.3000 then I think we will turn all-out bearish in EUR/JPY, targeting levels around 112.