The thing that is most likely to prolong this bout of USD selling is the fact that no-one seems to be on it. The traders I’ve been speaking to have either missed the move or are (like myself) fighting it. That spells more movement.

The Asian market will again be driven by stop-losses and by sentiment in the regional stockmarkets. Anecdotal evidence has it that the Japanese retail trading market is heavily long USD/JPY and if they start throwing in the towel, then we may see some volatility. However, the market should remain quiet for the next hour or so until Tokyo gets warmed up so if you’ve got chores to take care of, now’s the time.