USD/JPY has been qui...from FatGor

USD/JPY has been quite a mover since the start of the week, with the dollar broadly weakening amid the risk rally and also the yen benefiting from the renewed track lower in Treasury yields after an attempted breakout last week following the blowout US jobs report.

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ECB announced €600 billion worth of bond buybacks, and the Euro tried to break out during the trading session on Thursday. While normally bad for a currency, the initial reaction was very bullish. Since then, the markets have calmed down a bit and it looks as if the 1.1250 level is going to continue to offer a bit of a barrier. With that in mind, I do think that if we break down below the lows of the Thursday session, we can begin the correction that is so desperately needed in this market. At this point, only fools are buying after a move like this. Yes, it can extend it but that only adds more fuel to the fire when we pullback. If you wanted to get long of this market, you need to do it after a significant pullback so that we can gain the necessary momentum to do that.

FatGor

EUR/USD Forecast - Uncertainty Remains US Retail Sales soared in May, while Fed's chief Powell cooled down corporate bond-buying expectations. EUR/USD retreated from highs, with increased bearish potential in the short-term. German ZEW Survey showed that Economic Sentiment improved in June, as the German index came in at 63.4 while for the whole EU, it resulted in 58.6. Inflation in the country met the market's expectations.

FatGor