From the FXWW Chatroom: While we believe EUR strength in recent months reflects reduced institutional risks,
resumption in market concerns about the stability of EU institutions or fresh country risks
for Germany and Italy portend EUR downside. We prefer to express this EUR short versus
JPY as the due to the strength of Japan’s economy and JPY undervaluation. Moreover,
demand for JPY as a hedge against unspecified risks has picked up after the equity rout
earlier this month. (entry 131.32; take-profit 128.58; stop-loss 132.69; risk-to-reward ratio
of 1:2). This trade recommendation is valid from the Wellington open Monday morning to the
New York close Friday.
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