EUR/JPY nears the 50% retracement of the July-Aug fall

EUR/JPY having a big day

EUR/JPY is up 156 pips to 127.94.

The risk trade is positive today with the S&P 500 touching a record. The comments from Barnier and Raab today were also constructive and the tone was good. That's helped to lift the euro and the yen.

Technically, EUR/JPY is nearing the 50% retracement of the recent swoon, which clocks in at 128.45. That also corresponds closely with a pair of lows from July/Aug.

As I watch this move I'm thinking about the expression about markets doing whatever hurts the most people. The euro just went net-short for the first time in the CFTC report in 18 months. Cable shorts are crowded and all the talk is negative.