We're seeing the risk aversion sentiment continue to weigh on markets, but we still haven't quite gotten that breakout lower yet to both fully confirm our outlook and accellerate things lower. The 875 level on the S&P 500 futures is the key level to watch while the 132 handle is the near term support to watch on the EUR/JPY. Please watch the video for a much more detailed look at EUR/USD, US equities and gold. Monday's German IFO came in lower than expected, but not low enough to hit our sell trigger, so the price action wasn't terribly strong. There are several news items due out Tuesday, but none are very tradable on currencies right now in my opinion. In the video I explain a bit about most of them and what they might bring to the table though. The next clearly tradable report is out Wednesday morning:
1000 Wednesday 5-27 US Existing Home Sales m/m (4.66M expected) - This indicator has performed quite well on the EUR/JPY when it hits a nice trigger.
If it comes out at 4.80M or higher, EUR/JPY should rally 50 pips or more
If it comes out at 4.52M or lower, EUR/JPY should sell off 50 pips or more
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