Early morning buying of Yen crosses was once again reversed in the afternoon. The yen weakened against the high yielding currencies on speculation that advances in Asian stocks, after wall Street’s lead, will encourage investors to buy riskier assets. Good gains were seen in EURJPY up to 131.45 and in AUDJPY and NZDJPY. The same names buying AUDJPY turned and sold in the afternoon. Overall AUDUSD held in ok above 7150 with a bounce back to 7190, but decending tops and an outside candle formation yesterday sees it under technical pressure for now.

EURUSD quietly traded sideways until Trichet’s comments saw it smashed down to test 1.3100. It held temporarily with good bids holding the level, but market was long and cut positions, taking out stops under 1.3080 with it. EURJPY was sold off in tandem but only managing to trade marginally under 130.00 before a bounce back above due to USDJPY bids holding it above 99.00.

Ranges…

AUDUSD 7165 – 7225

EURUSD 1.3065 – 1.3197

GBPUSD 1.4847 – 1.4941

USDJPY 99.23 – 99.74

EURJPY 129.93 – 131.45

Goodluck

Sam