My pick: Stay short sterling-yen, watch for dollar-yen below ¥101.50 Expertise: Fundamental and technical analysis Average time frame of trades: A few hours to a few weeks Sterling-yen remains on track for a continued pullback, as investors grapple with potential shifts in both the Bank of England's and Bank of Japan's policy signaling, alongside an increased drive in global risk aversion rising due to emerging market turmoil. A bearish bias remains appropriate as long as price remains below last week's high of ¥171.45-50. We were looking for euro-dollar to close above $1.3650 last week to establish longs, but price failed; the path of least resistance may be lower from here. A more concerted dollar-yen pullback (and a more significant top would be established) below ¥101.50. Event risk is high this week - caution is advised.
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