Once a trend gets started in the FX markets it generally takes at least a few weeks to mature. USD/JPY has started to pick up bearish momentum on the successive breaks below important technical support levels at 88.00 and 87.10. The manner in which these breaks occurred suggests to me that there is more to come. I will continue to play the edges of a broad 84/88 range with a definite bearish bias.
With regard to sterling, I think we may be in for a big week or two. If my information is correct, there is some very large selling of GBP by German interests in the UK which will of course involve the buying of EUR. EUR/GBP last night broke above short term resistance at .9140 and I’m looking to trade a short term range of .9100/90, again with a very definite bias, this time bullish.
Good luck today.