Archived IMT (2009.06.16)

German ZEW survey better than expected, helping EUR regain $1.39. Has CADJPY fallen and cannot get up? The 200-pip decline in yesterday's short HotChart is putting together a potentially bearish engulfing pattern on the weekly candle, courtesy of JPY strength rather than CAD weakness. We warned about the role of yen strength in previous IMTs, which also supported our initial 97.40 target in USDJPY. Risk appetite stabilizes as FTSE and DAX are off only 5-7 pts. But more losses in the pipleline for EURJPY, NZDPY and AUDJPY. USDJPY resistance at 97.20 eyeing 96.30 and 95.90.