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USD/JPY drop below 149.50 lets the EUR/USD off the hook

Earlier this morning, as the GBP/USD dropped back below 1.24 and towards 1.2375, the EUR/USD came under pressure too. That delivered a move to below the low seen yesterday, at 1.0830. There was a good chance that there were interim long stops below that level and it seems likely that some of those were removed. Well, no sooner had the Euro slipped to 1.0825 than it started to rebound again. Now, of course that rebound was helped by the relapse below 150 in the USD/JPY and notwithstanding fresh downside in the EUR/JPY. There can be little doubt there has been an unwind of EUR/JPY longs at play today. Had that not been the case, then the EUR/USD would be above 1.0900 right now, given that slide in the USD/JPY. Nevertheless, the drop in the USD/JPY has allowed the EUR/USD to rebound now and it on session highs as I end this update, currently trading at 1.0859
 

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