After Friday’s antics yesterday appeared pedestrian. I would have liked a little more zest but I guess we’re back to the normal, humdrum development. I think we all know the eventual outcome but now comes the time where we have to work for our rewards again. I can’t see this being a particularly directional day but more one that will see some relatively broad swings. This is certainly reflected across the three not-quite-so amigos. Thus, expect to see the current dollar gains extending but for a correction. Indeed, this is also reflected in AUD/USD…
The JPY pairs have been less than lacklustre. That suits my expectations. There is no confirmation yet that USD/JPY is going to repeat its bungee jump. It is currently flirting with the 4-hour Price Equilibrium Cloud – something that could still see it’s heart rate monitor still remain up and down – while the 4-hour Cloud has begun to flatten out. Even if it breaks, we still have the challenge of the declining daily Cloud. Therefore, it doesn’t seem like it will make any astounding moves today.
The fallout of a flattish USD/JPY and limited range in EUR/USD doesn’t seem to auger well for EUR/JPY. It’s sideways to lower – drifting lower in a gradual decline – but I can’t get too enthused about it at this point.
Thus, it seems like a relatively dull day…