- AUD/USD has finally broken above .8900 on AUD/JPY short covering; next target .8950/70
- EUR/JPY has moved up another 100 pips in the last 20 minutes and is now 600 pips off last nights lows
- EUR/GBP is back towards session highs and we’ve seen in a day what we normally see in a month
The market is taking the view that the panic selling last night was solely due to out trades on the equity markets. Now that these have been recognised as out-trades, the overnight losses in the JPY crosses are being reversed. The Nikkei is still almost 4% lower on the day so this is a dangerous move in my opinion. I’m still in the sell-rally camp with AUD/JPY at 83.50 and EUR/JPY at 119.00 looking like good entry levels to me.