We’re beginning to see the light of day but the balance between the pairs is rather rough and ready. We have seen the final rally in USD/JPY for a pullback while EUR/USD and USD/CHF could see some swings. I’d suggest taking care but we are relatively close to a stronger dollar rally. In GBP/USD, we should see a pullback and deeper losses. At some point, probably more towards the U.S. session – or even into tomorrow – we should be looking for dollar gains for a stronger follow-through. Very much depends on corrective development.
I had thought we’d reached the high in EUR/JPY. I think we should allow for a final push higher – perhaps a quick rally in USD/JPY that could provide the reversal. Overall, the cross will soon begin to turn back lower.
As I mentioned with the risk of early swings, AUD/USD needs a pullback higher and a reversal back to the downside.
Best keep short trades for the moment until the dollar can begin to see a stronger rally.