USDJPY broke the 99.65 level and put in a 99.41 low. Currently, I am short a half position at 99.60 and will look to sell the other half at 99.70 with stops above 99.85. The downside target is the 98.60 lows. Back with you next week. (forex.com)












The major theme of the week is that while the Fed is focused on easing monetary policy, the ECB is more focused on pricing stability and inflation concerns. On Wednesday Trichet noted fundamentals are “sound” while the labor markets remains strong. EU will do well against the low yielders such as the USD and CHF on higher risk appetite.
I look for EU to achieve 1.6000 while 1.5400 supports the market. UJ has a bit of its own wood to chop to break through 98.50 support and then on down to 98.00, which would bring an all but certain test of the March lows of 95.50. If both EU and UJ head towards these levels, that will most likely leave the cross, EJ, flopping around in the 153.00-159.00 range while the focus shifts away from carry trade/risk aversion theme, and towards the commodity/USD theme.