DOLLAR-YEN: The sequence of higher daily highs and lows continues to provide bulls with comfort with a close back below Y102.30 now needed to ease bullish pressure. Bulls remain focused on the Y102.93-103.09 region while the Y102.30 level supports but overall bears need a close back below the Y101.95 support to end bullish hopes and shift overall focus back to the Y101.07-32 region where the 55-WMA is located. It is worth noting that the 21, 55 and 100-DMAs are clustered in the Y101.96-102.07 region which would increase the significance of a break below Y101.95. Stops are noted below Y102.30 and Y101.95 today and above Y103.10. EURO-DOLLAR: Rallies continue to fall short of the key $1.3445 resistance level with the 21-DMA now also proving a stumbling block and coming in around $1.3421 today. Bulls need a close above the $1.3445 resistance to confirm an easing of bearish pressure. Overall bulls continue to look for a close above $1.3485 to confirm a break of the falling channel top off 2014 highs and shift focus to the $1.3642-1.3700 region. Current focus remains on the key $1.3294-1.3333 support region. A close below $1.3294 would reconfirm bearish pressure and shift focus to the $1.3101 Sept 2013 monthly low. Stops remain above $1.3450, $1.3490 & $1.3500. Stops are noted below $1.3330 and $1.3290.
Still not a lot of people talking about GBP/CAD but I believe the macro positions are very heavy with plenty of call levels on way down through 1.8100. USD/CAD stops reported o/n through 1.0860.
USD/JPY Trader: While fixed income is bid and the dollar generally soft, USD/JPY holding in very well as stocks continue on higher. Perhaps it’s the carry trade manifesting itself in Asia, or just Japanese outflows. In any case, desk maintaining longs, expecting resistance 102.80-103 where we will look to lighten up.