Yen weakness looked impulsive; more to come?

I’m on the wrong side of this having sold EUR/JPY yesterday near 132.00. I’m hoping for some early profit taking out of Asia which will give me a chance to reduce my losses. Pairs like AUD/JPY still seem to have a lot of topside potential and I think its probably best if I stay out of the way of this market until I have a better feel for what’s going on.

I certainly wouldn’t be getting bullish USD any time soon, but we could see a healthy dose of risk return to the market, so the Yen crosses are the obvious target. If this happens, I’d expect USD/JPY to stay steady or even edge higher and the main gains to come through the components ie higher AUD/USD.