Should the market drop below 0.8320 and 0.8300, the Long Euro positions should be Squared and the market outlook should be re-assessed. We all know that. Now, with the Euro headed towards 0.8570, it should become easier for Dollar-Yen to finally rise . The pair faces an immediate Resistance at 108.85 and then a decisive one at 109.00. The expectation holds good while the market trades above 108.20-108.00 .
Short positions are to be maintained.
It would be incorrect to buy Dollars. Pound may best be left alone Trading Pound can often be an exercise in Masochism. To our mind, Cable now looks absolutely undecided within a 1.44-1.47 range . Our view is that this pair will trade sideways and erratically for some time and that there is no point holding a position in this pair in the Spot FX Market. It may make for some good Option plays, however, but that's a different story.