Additionally, implied on EURUSD looks like it could be breaking out higher. This is similar to a move seen in 2007-2008. The break higher aligned with EURUSD's fall from 1.6000 to the low 1.2000s. Taken together, Implied could be seen as a leading indicator of more aggressive moves to come while favors trend continuation, which is EUR & USD .
ST invalidation could be seen at the 200-hma near 1.1130. A move to this level would mean a strong gap fill. The cleanest fundamental backing to this view is the push higher in Eurodollar , which seem to be pricing in no rate hike by the Fed this Fall. If Euro's struggles remain, the Fed no-hike could weigh heavier on USDJPY .