- Yen crosses still look liable to deeper falls in my view, led by EUR/JPY but with others like NZD/JPY also looking fragile after massive up-moves. The big level to watch today in EUR/JPY is 136.20.
- Option-protection and semi-official bids near 101.00 have been very strong indeed but the stops below 100.70 are reportedly massive as well. I expect these levels to get tested again in coming days.
- The USD has been trying it’s hardest to catch a bid tone but I’m still not convinced that the market is buying into this 100%.
Ranges will most likely remain slow and tight until one of the bigger levels breaks but I’m in the sell-30-pip-intraday-rallies camp.