I’ve taken a small short position in this pair this morning as I feel there is plenty of scope for an already ultra-long market to be disappointed. Problems in the EZ are only ever just simmering below the surface and the market is always worried about being long of the single currency. On the Yen front, more Yen-negative comments from the new PM Abe don’t seem to be having the desired effect so perhaps the market is getting close to saturation point?
I’m not calling an end to the trend here, but I do think a 300/400 pip pull-back is feasible?