Asian session, July 31st: Yen crosses staying very heavy

It was very quiet in overnight trade and we can expect exactly the same in Asia with nothing of note on the economic calendar.

• Any volatility is likely to come from the Yen crosses, with macro funds noted sellers of GBP/JPY in particular during overnight trade.
• USD/JPY short-term technical support at 97.60 continues to hold but that won’t last forever. Expect heavy stops below 97.50.
• AUD/USD has consolidated yesterday’s losses and looks likely to test 90.00 at some stage today, especially if AUD/JPY selling picks up.
• EUR/USD is once again stuck in neutral gear and going nowhere, although heavy end-of-month central bank buying of EUR/GBP had its usual impact.

The most obvious trade is to sell-rallies in the Yen crosses and elsewhere I’d be patient and wait for opportunities to pick up 100/150 pip swing trades.

I’m away this morning but will be back for the afternoon session.