With Carney hawkish on inflation, and Kuroda neutral and waiting, I’m looking for a Tankan fueled retracement due to the JPY being oversold (if you’re a bear) and then a Bullish entry at either the 148.30 area with a target of 159.80, or at an even stronger retracement to the 146.00 area with a target of 157.50. This pair has found resistance at a Mar 2016 pre Brexit support, and there is a decent head and shoulders reversal pattern already in place for you Bears. The JPY Tankan, and the GBP PMI, are up to bat shortly and will hopefully give us some direction. Update Oct 1 (GMT-7) 6:30 PST>>> The Japanese Tankan came in mixed as far as expectations, but was still expansionary, however the Sep. UK Gfc consumer confidence has again slowed its contraction from -10 to -9. We still have the UK PMI coming up which could send the pair one way of the other.

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