Never underestimate the market’s ability to move just far enough to trigger your stop-loss. That seems to be the theme at the moment as EUR/USD dipped breifly into the high 1.35-teens before rebounding into the 1.3530s.
USD/JPY is posting a very impressive rally as covering of dollar shorts ahead of the weekend looks to be a catalyst.
Weber’s reminder that Europe has its own giant financial skeleton in the closet (Hypo Real Estate, and several others) helped as well.