Trading conditions are illiquid as usual in early interbank trading. EUR/USD closed in NY on Friday at 1.3480 and is now trading close to its highs after the NFP, at 1.3515. The strong close in EUR/JPY on Friday above 135 is also helping to underpin the single currency.
I expect EUR/USD to continue its recent climb but I see no immediate reason for the pair to trade outside it’s short term range of 1.31/1.39 and as we are now smack in the middle of this range, I will tend to avoid this pair. EUR/JPY will probably trade higher over the coming days and I am suggesting a 133/140 range here with a short term bullish bias. I am sticking with my USD/JPY 92/102 range and so am getting close to levels where I will consider going short. I will wait until EUR/JPY shows signs of exhaustion and I will then look for a USD/JPY entry level. AUD/USD remains bid but must first clear .7235 before major technical resistance at .7425 becomes a viable target.
Good luck today.