The market is starting to develop as I’d imagined with risk sentiment turning slightly sour.
USD/JPY: I will stick with small short position but will not add to the position pre-BOJ just in case we get any unexpected surprises. Will reassess once the dust has settled after FOMC later in the week. Those running leveraged positions would be well advised not to be running too much risk in case we get some nasty gaps either side.
EUR/USD: I’m bullish. I expect that we will get another gap higher if 1.1060/80 support holds.
Cable: Looking to reinstate longs near 1.4270 but I do prefer the bullish EUR/USD play in the short-term.
AUD/USD: Expect some sideways trading between .7350/.7650 whilst risk sentiment is soft.