Stocks are on the mend, helping spark some pre-weekend short-covering in EUR/JPY prices pushed through intraday resistance around the 116.85 level and reached 117.30/35 before stalling. Another batch of small stops are eyed at 117.50. Solid offers are eyed above the 118.25 level.
Dealers are impressed at the resilience of the stock market despite today’s horrible data. But with two hours left, who knows where we could end up.
JPY weakness, a rebound in commodity plays like the Canadian dollar (1.2885 from 1.3005) and a drift higher in Us bond yields are signs that fear is receding.