Single Currency Futures

I look at these because they help to understand what the important pairs like EUR/JPY, USD/JPY and EUR/USD are likely to do, being they all look precarious this morning after moving up and taking the Index Futures with them around 4-5 a.m. today.

I'll do this verbally: The $USD looks like it will come down, which is supportive of risk generally, it would seem to support the EUR/USD and the USD/JPY pairs, but it is only one half of those pairs.

The Euro is a bit more complex, VERY short term it looks a little shaky which could keep the EUR/USD about flat if the $USD moves at the same time as described above or... In the slightly longer 5 min scale the EUR so far (I say that because initial weakness in the 1 min chart may have not travelled to the 5 min chart yet, it may not, but that's how things work) looks like it will give support to the EUR/USD. This is probably past any timeframe we need to be concerned about for the near term trade, but longer term Euro action as seen last night shows overall long term distribution, as such

The JPY or Yen looks strong in near term trade, this is not good for the carry pairs, especially if the Euro fails near term. Slightly longer timeframes don't look very good for the Yen, so putting all of that together real quick, the USD's initial look of early weakness with the Yen's look of strength should send that pair down which is not market supportive. The same can be said of the EUR/JPY. The EUR/USD is a toss up between which currency moves more, if they are about equal, the EUR/USD may stay flat.

The slightly longer term looks supportive of the market in the carry pairs as well as the EUR/USD.

The take away would be (if I'm near correct) EARLY WEAKNESS IN THE MARKET FOLLOWED BY STRENGTH, which is what I was talking about after market yesterday when I said, "If it were me... "I'd run the stops at nearby support and below 50-day moving averages, accumulate those stopped out shares and run the market up from there. That could very well happen within 1 trading day and the best thing is, the Index futures timeframes, both very short term and slightly longer agree.

So it looks like last night's ambiguity has cleared up a bit.