Risk aversion still the play in Asia

After Medvedev threw a BRIC in the works of all those who were long USD and JPY yesterday afternoon, it all turned out to be just another Russian having a free dig at an old adversary. The sharp move up caught the short term market short but I believe we can now expect a resumption of the EUR/USD and EUR/JPY selling. The bids we referred to yesterday at 1.3750 in EUR/USD were very strong but expect big stops below. The EUR/JPY retracement is still in effect and I expect to see a test of important technical levels around 130. For this session, I’m happy to trade a 1.3760-1.3860 EUR/USD range. Good luck today.

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