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USD JPY (121.40) The current objective remains at 123.00 . It is difficult to imagine a worse situation for the yen than the one that emerged after the rate-decision debacle. Not only have Japanese rates remained at a miserly quarter- percent, but the BOJ’s independence has been questioned, Fukui’s authority has been doubted and the whole matter revealed failings in information security because the decision was leaked to press in advance. Short-term traders could hardly have expected the news to deteriorate further, so some profit-taking on yen shorts had to be expected on Friday and this was probably the case. However, the dollar did not retreat too far; following a small decline early in the session, it recovered to close unchanged on the day. The modesty of the correction reveals the extent to which many would-be carry-traders still wait for more favourable prices to get in (the market’s current preoccupation with the size of yen shorts on the IMM and the risk of a that this represents is nothing more than a reflection of this desire). We still count on such demand to buoy the dollar on dips ahead of 120.50 , the risk-limit to our current bullish scenario. EUR JPY (157.45) The target remains 161.00 . Ahead of this, we expect to run into supply at 158.00/10 . The risk-limit still stands at 156.30 . GBP USD (1.9750) Stronger than expected UK retail sales weren’t able to push the Pound higher on Friday, which suggested that the market was long already. Instead, the subsequent dip afforded us the opportunity to re-enter into a bullish strategy for target 2.0100 . The risk-limit is at 1.9640 . However, should 1.9780 be overtaken, the risk-limit must be tightened to 1.9690 . AUD USD (0.7895) The current target remains 0.8050 . The first hurdle is visible at 0.7960 . We keep the risk-limit unchanged at 0.7860 .

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