It is a slooow afternoon here as the forex markets take a summer seista. They are not completely dormant, as computers duke it out with other computers. USD/JPY is edging up in its quiet range after bouncing twice from the 95.80 area, the top of the former range which we broke out of last Friday in dramatic fashion. If we can retest the break-out and hold, this suggests a rebound ahead. A move through 96.05/10 may spark a short-covering rally into the close.
EUR/USD is a shade lower at 1.4158 after spending most of the afternoon in the 1.4060s. Dealers are reluctant to push EUR/USD agressively to the downside after holding above the pullback lows (1.4104 yesterday afternoon) on this morning’s dip to 1.4110.