EUR/JPY apperas to be basing around 127.00 in early European trade preparing itself for another stab at the days high of 127.46. Early trading has been pro US Dollars but once the “dust settles”, Euro crosses are expected to gain as further short covering gets underway. Euro crosses are well supported across the board today in the wake of Sundays much better than expected Greece loan package both in terms of size and interest rate. EUR/JPY is up 3% from Thursday (2% from Friday) and looks ripe for a clean break of 128.00. Topside gains have been held back somewhat by JPY strength on the possible Yuan revaluation story. This story appears overdone and the chances of Yuan appreciation still look some time off; possibly not until Q3.