Yesterday was a day of consolidation in FX markets and it passed without producing evidence of material change. Consequently, we are sticking with recent themes: USD strength, JPY weakness and NOK strength. The yen story will receive a fresh boost today if GBP/JPY closes above its weekly cloud (130.35) for the first time in over four years. The NOK fell sharply this week with EUR/JPY revisiting its Feb breakout level, but momentum is now overbought, suggesting NOK is a buy on dips.
Click here to read the full report: Daily FX Technical
Barclays Capital