EUR/JPY

Today’s money maker was the EUR/JPY pair. Starting the day at a low of 161.54, it hit a high of 163.48 a few minutes past 12PM (ET) marking almost a two hundred pip movement. The ECB’s Trichet gave the euro some strength by pledging “strong vigilance” toward inflation this morning. After leaving the 4% rate untouched today, markets interpreted his comments as signal for a rate increase at the central bank’s next meeting. It’s important to watch whether this pair’s momentum will continue with an upward trend toward last week’s levels. If markets stabilize and investors become more risk tolerant, this may be the case. Or to see if the pair is just trading in ranges set after the unwinding of the carry.