Flash: Play short USD/JPY for retest of 96.50 - TDS

FXstreet.com (Barcelona) - While Shaun Osborne, Chief FX Strategists at TDS admits that "a sustained move through USD1.37 in EUR/USD would very likely provide a little more impetus for EUR gains", the preferable option to play short USD would be through USD/JPY, noting "from a short-term view strong rejection of the JPY99 area today may see 96.50 retested."

Osborne anticipates that if risk-on stays the next few months, "we think the higher-yielding commodity FX currencies should outperform, specifically, we think EUR/AUD should track a little lower near-term towards 1.39 while NZD/CHF should track higher."