Friday was a day when I really didn’t have too many expectations. There were ambiguities floating around, too many blind spots that could have been interpreted (at that stage) in two ways. Therefore, if I had anything on my mind to achieve on Friday it was to identify when one of the options broke down and narrowed the options down to one. I think that’s happened. We probably have another day (or two) for the structure to play through and extinguish its duties to completion but once that’s done and dusted I think we’ll begin to see a stronger move develop.
The above applies to the Europeans specifically and to a mild extent in AUD/USD also. Therefore, over today and potentially tomorrow the best bet is to dabble in a limited manner only and watch out for the final confirmation. The Europeans in general have the least likely outlook of significant moves, the Aussie is poised and can make its move at any time.
I suggested on Friday that the JPY pairs had the more straight-forward outlook, particularly in USD/JPY that performed almost point perfect. I had less expectations of EUR/JPY and this proved correct. I don’t think we’ll get too much excitement today either. Indeed the outlook does like a two-way market today but it’s after today that we can probably expect a stronger directional move to develop. To be honest, USD/JPY may well see the same fate today.
Thus, don’t expect the earth, moon and sun today - Be satisfied with a stroll down the street.