Yesterday we saw a stop-loss run in EUR/USD down through 1.3650 and with EUR/JPY now firmly entrenching itself below 140, it’s probably safe to assume that the downside will stay in focus in USD/JPY. It’s Friday, risk-off day in most markets when positions are trimmed pre-weekend, and those well-chronicled stops below 101.15 will most likely be targeted at some stage.
Elsewhere the AUD looks a little soft to me on the crosses and vulnerable for a short-term sell-off (possibly led by AUD/JPY?) and everyone I speak to is long AUD/NZD and that’s never a good sign!
Support in EUR/USD was confirmed now at 1.3650 so I prefer to buy dips with stops below that level. TGIF 🙂