After much speculation and secrecy, government is scheduled to release the so called “bank stress test” tomorrow. Looks to me that regulators are so intent on avoiding statements that might undermine confidence in the banks, that they risk eroding trust in the stress tests themselves. What a tongue twister. But seriously, why the clandestine approach? Why not make the numbers public as soon as they were available? Is it possible they are really bad and Treasury officials need time to prepare some great, reassuring explanation? At the same time it has already been stated that none of the 19 banks subjected to the test will be allowed to fall. So, what is the big deal? I guess we will find out tomorrow.
Preliminary employment report is viewed as encouraging. American employers shed about 490,000 jobs in April. This is better that 700,000 or in March, but hardly a great improvement. At any rate, this was viewed as a positive development and it probably is, except for almost half a million who lost jobs. These two events very pointed out as the forces behind today’s moves, which went both ways. 
Most currency pairs experienced decent size swings with sharp reversals for the day, including all Yen pairs. Yesterday I brought up a possible buy in EUR-JPY.  Plan was to enter on a breakout above last high. Instead, price broke under the congestion low and fell about 200 pips. Then it sharply reversed and ran up 250 pips. Last post mentioned charts pointing in both directions, with CHF-JPY singled out as a sell indicator. What I see right now is even wider consolidation area, which could provide good trading opportunities. If I’m right on direction. Once again, signals are confusing.

With this in mind I sold EUR-JPY on this strong move up. This has making of another move down, so I’m looking for a target of 130.00. BTW, entry was at 131.51, giving S/L at about 132.50. But a different order was placed with another JPY pair.

NZD-JPY has a buy order at 58.04. If this happens soon, objective is about 130 pips. Even if yen crosses continue down , this order will remain. For now.
Few days ago I mentioned sell order in EUR-GBP. I just clossed that trade.

This pair also experienced large swings, but I managed to hold on to it. Original target was 0.8800, so I closed a little short, bit still like this trade. We are close to 0.8800, which might be a stubborn support. Since I’m done for the day, no reason trying to hold out for the remaining few pips EUR-GBP has slowed down movement over last month or so. While volatility is not what it used to be, it still is above historical averages, so this cross is very much tradeble. I’m sure more trades will follow. Earlier this week I described  situation in CAD-CHF. My order was filled. Updates will be posted when there is something to report.

Mike K.