The status quo remains. This state of balance between the bullish and bearish scenarios remains with limited movement yesterday more reflective of the market collective indecision as it stands like a rabbit staring into headlights both in front of him and behind…

If there was any swaying towards the bearish side then it was ever so slight as EURUSD managed to extend its rally by a very unpersuasive 9 pips although GBP proudly tried to out-do its Euro-zone compatriots by extending gains to the 1.6633 resistance.

So we're left in the middle and pretty much with the same break levels as outlined yesterday. The downside still attracts me slightly more due to the desire to have a Dollar bullish reversal confirmed more thoroughly than it did on the last dip to 1.5061 EURUSD and 1.0032 USDCHF. The only thing I find slightly bothersome about that is it would appear to imply that GBPUSD must break above 1.6738 and I didn't really have that in mind. Of course, this assumes that it won't go walkabouts all by itself again. However, while momentum is beginning to lull into consolidation mode, basically it does look more biased towards the Dollar bearish side.

Maybe the JPY crosses hold some clues as these certainly don't have the look of making a high at the moment. It is possible this is driven by a strong USDJPY but if both EURUSD rallies along with USDJPY the implication is quite obvious. Although it's not a certain link I feel it will be worth watching the crosses for any idea of what will break and when.

For USDJPY itself, well, upward progress is upward progress and until that stalls it dies seem to be the dominant short term direction and I can't see any obvious signs of reversal from momentum indicators yet. It may be limited by 91.35-55 today but even that is positive in the overall scheme of things and tentatively this would make it quite bullish for a minimum test of 82.89.