EUR/JPY: As we have been writing for weeks now, the wind has changed direction here somewhat but whether we are seeing a period of bearish consolidation or a partial retracement remains to be seen. The big level to watch now is the recent top at 125.75 and a break above there will see technicains calling for a move to the 38.2% at 134. The initial move this morning is higher, so there may be some stops above last Thursdays’ spike high at 124.95 which the market is gunning for.
EUR/CHF: I am totally biased here so my views are less than objective. Nevertheless, after the break below 1.4650 on Friday and then spending two sessions trading well below that level, the failure to close below it will certainly have bears questioning their commitment.
