EUR/JPY is getting sold off in a hurry as this morning’s optimism suddenly is called into question.
The cross rallied as far as 110.60 very briefly, just far enough to trigger stops in the 110.40/50 region.
Stops done, slide resumes.We’re now down to 109.30. 108.85 and 108.35 are supports on pullbacks within the old range…
Contributing to euro weakness is continued talk among respected officials of controlled sovereign bankruptcies (from Weber and Zoellick) . US equities have lost about two-thirds of earlier gains and gold is beginning to edge up again, a euro-negative of late.
Bids are seen in the 1.1975/85 area with stops seen down at 1.1960/65.