Its too early to be getting an indication out of Tokyo, but some of the early Monday chatter is focused on barrier-related selling ahead of 93.00. Also, while momentum studies have been showing ‘overbought’ for a long time now, the surge on Friday has really focused some dealers now on how stretched the Yen is on the charts. 92.40 is being talked about as a pullback target, and even 91.80/90. There is recognition that the trend is strong.
Some of the whispers around are that the market is too ready to be long and dips could be into an air pocket as there are limited shorts around to support it.
–
EUR/JPY its the same. Dealers are talking about how far its come – even more extreme than USD/JPY; and the same points are being made about the potential for a drop into an air pocket. But, again, the trend is strong.
Around 127.00 have profit-take orders, 125.80 buying starts to line up.
