EUR/JPY still the lead pair

We have been recommending a 115-117.50 consolidation range here and that is what has developed. Don’t get into the trap of getting bullish at the top as Asia seldom follows the overnight lead. A clear break above 118.00 will alter the outlook and suggest a new 116.00-120.00 trading range. All bets off above 120 as the bears will head for the exit and a significant short-covering rally might well be on the cards.

Good luck today.

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