EUR/JPY, after a strong rally from 115, did not have the momentum to break above important technical resistance at 137 and it has now settled back towards yesterdays opening levels. Longs will be getting slightly nervous as the 200-day MA is an important obstacle. This is still the lead pair in Asia and it will probably take its’ lead today from regional equity markets.

Elsewhere the RBA rate decision is keenly awaited and the AUD/USD has been trading quietly in anticipation. The market feels somewhat overbought and a pullback towards .7000 remains a distinct possibility.

Good luck today.