I wrote a few weeks ago that I was taking a long position in EURJPY as at some point , JPY overvaluation had to correct. This has worked out well and the move is taking a new momentum today. Yesterday post made the point that I continued to favor long EURUSD and it has moved smartly above the cluster of 1.2950-1.2985 . Not that Europe is doing any better, it is doing probably worse, at least Greece, Portugal, Poland , Hungary … Italy is not too keen on a Spanish bailout, as its contribution would be somewhat in the order of 1.5% of its GDP! Pyramids have a nasty way to crumble. Perhaps we are close to the nadir, and once the worst is in sight, what more can happen? Currently the EUR is irreversible, so until further notice we shall not try to outsmart the market. Thursday , Spain will issue Bono’s , and that will be the test . I do not normally pay attention to the period between the NY close and the 7 am Tokyo opening. The EURUSD has nevertheless broken, after its third the attempt , the 1.3171 high of September 17.
R1 1.31, R2 1.3147, R2 1.3272
S1 1.2975, s2 1.2896, s3 1.2770
PP 102.60, R1 103.36, R2 103.75, R3 104.90
S1 102.22 S2 101.47, S3 100.35