I expect the euro, higher yielding currencies, stocks, commodities to remain under selling pressure. At least, until investor’s confidence in a solution for Greece’s government debt troubles starts gaining some ground. Therefore, because a spike in exchange rate volatility is very likely, one should be extremely cautious with the use of leverage during the next few days. I remain long USD/JPY since the pair was trading at 86 and long EUR/JPY since 123. Good luck.

A move through channel resistance is required in order to trigger a reversal. A move above would warrant bullish action against 9950 for a move to 10300. With 5 waves potentially complete at 9950, I lean towards the upside. I would play a reversal as such; long on on a break above 1.0100 with a stop below 1.0000 and a target at 1.0300.

Staying long the CAD/JPY proved prudent as the pair would reach as high as 94.00 where we took profits. Current weakness has the pair threatening the 20-Day SMA at 91.97 which is the level that I targeted last week for a change in bias. We could be seeing a range developing between 92.00 and 94.00, but a break below the technical level exposes downside risks to 90.00. As I said last week I still would want to see a shift in risk sentiment before getting aggressively ling the Yen.
Meanwhile, I continue to wait for the NZD/USD breakdown my target level has been 0.7000 but with the 100-Day SMA providing support, a move below the technical level could bait me into a small short position then add to it with breaks below the 200-Day SMA at 0.7067 and 0.7000.