In the forex space it was all about JPY strength and EUR weakness overnight, with EUR/USD testing the former downtrend drawn from the 2008 high of 1.3820

In the forex space it was all about JPY strength and EUR weakness overnight, with EUR/USD testing the former downtrend drawn from the 2008 high of 1.3820. Mario Draghi joined a number of peripheral Europe dominated ECB members in flagging that the EUR is creating a headwind for the European economy. Throughout January and February we saw solid resistance around the 141 level (on EUR/JPY) and after breaking through this level after the recent ECB meeting, we are now seeing EUR/JPY push back through. We will see how the close fares, but as things stand the pair is trading through the 38.2% retracement of the February to March rally at 140.92. A close below here could target the March 3 low of 139.15.