Not a surprising day in the markets if you read my earlier posts. Forex and Equities cross reference each other in complex ways. But sometimes it is straightforward, structures in either cross reference structures in the other. This means sometimes on the end of the week you can see hints about the coming week's open.
In all events, EUR/USD is indeed consolidating and this provides a kind of safety net for equities. Equities fell near the close on news. USD/JPY looks to be near the end of an Elliott Wave of some kind, I would expect it to rise given a real recovery. But it can still fall before this happens.
There are signs in both Equity and Forex markets of a recovery. What I am saying is USD/JPY is one of my benchmarks for a true economic revival, companies improving the balance sheets because of earnings not debt. EUR/USD is a benchmark of mine for computational structure in the Equity market cross referenced to Forex.
© 2010 Guy Barry - All Rights Reserved.