USD/JPY: had a sharp selloff after Japan Finmin Aso expressed concerns regarding rapid yen weakness earlier today. The market was absorbing profit taking on short yen positions against various currencies well until then. A small correction seems likely. Sell the pair with a stop above 118.40, adding on breaks of the overnight low of 117.30.
GBP/USD. Buy the pair on dips to 1.5632, yesterday’s low, with stops below the figure. Play the range in EURGBP unless it breaks out.
AUD/USD: With rising risks of a broad-based correction in the US dollar, keep a very close stop on AUD shorts above 0.8650 to re-sell at better levels.
UBS