- EUR/CHF: Play a 1.2330/1.2450 short-term range with a bullish bias. Buy deeper dips to 1.2270 looking for a continuation of the bull trend. Above all be patient and wait for the right levels. Many traders have bought in at the wrong levels above 1.24 and I expect plenty of choppiness before the next leg begins:
- USD/JPY: Risk-reward would seem to favour a sell-rally strategy with stops above the recent 90.20 highs. Support is very firm near 87.80 but I suspect we will get a proper test of this level quite soon. Selling near 89.50/60 makes a lot of sense from a risk management perspective. Remember the market is still very short of Yen and we are still missing the timeline from Abe/BOJ as to when they hope to implement their major easing programs.
I’ve updated the shorter-term technicals in the members section. Good luck today.