I’ve just read a report from a Prime Broker (which I’ll publish a link to once I’ve verified its authenticity) and this says that the professional market (hedge funds, CTAs etc) are heavily short of EUR, and are particularly short of EUR/JPY.
A quick look at the EUR/JPY chart shows that the bears have very little reason to be nervous and macro short covering is not anticipated until the market breaks back above 105.25, 300 pips higher.
