We have all been focussing these past few days on 87.00 and what an important level it is in the short term but now that it has held on two occasions, perhaps it’s time for the shorts to feel a bit of pain. Corporate offers are supposedly grouped around 88.00 but if they don’t appear in size then we could get a bit of a short squeeze.
AUD/JPY also looks reasonably constructive on the short-term charts and buying intraday dips towards 75.00/10 looking for a break above 76.00 and a move towards 77.75 certainly makes a lot of sense from a risk-reward perspective.