Ultimately price action tells the story but here is some thoughts from Fxcm.
21:32 EUR/JPY: NY Traders Warn of Risk of a Correction San Francisco, Jul 12. Despite the strong close on US stocks which remains supportive for the carry trade environment, dealers are wary of EUR/JPY after the cross again made fresh record highs at 168.86 today. The cross is currently at 168.77 and dips in NY over the last few hours have been as shallow as 168.65/70. NY traders" forecasts for the topside of tonight"s range start at 169.00 and go to 169.20. On the downside, dealers" forecasts begin at 168.40 and extend to 168.10 and as low as 167.70 on anticipation of a correction lower. Attempts to target EUR barrier options that begin at 1.3800, continue to underpin the EUR/USD leg of the cross. EUR/USD is currently at 1.3793/95, just shy of the 1.3799 earlier NY highs on yet another attempt to trigger the barrier at 1.3800 during the thin early Asian trading session. [email protected]
21:32 EUR/JPY: NY Traders Warn of Risk of a Correction San Francisco, Jul 12. Despite the strong close on US stocks which remains supportive for the carry trade environment, dealers are wary of EUR/JPY after the cross again made fresh record highs at 168.86 today. The cross is currently at 168.77 and dips in NY over the last few hours have been as shallow as 168.65/70. NY traders" forecasts for the topside of tonight"s range start at 169.00 and go to 169.20. On the downside, dealers" forecasts begin at 168.40 and extend to 168.10 and as low as 167.70 on anticipation of a correction lower. Attempts to target EUR barrier options that begin at 1.3800, continue to underpin the EUR/USD leg of the cross. EUR/USD is currently at 1.3793/95, just shy of the 1.3799 earlier NY highs on yet another attempt to trigger the barrier at 1.3800 during the thin early Asian trading session. [email protected]