Can we still look to the financials to guide us on market movements?

Earnings season is now upon us and so far the only major earnings component that has been released is the J.P. Morgan earnings report that came in Friday before the market opened. After the report was digested by the marketplace, prices fell dramatically.

USD/JPY is still being held above the 81.60 low. Intraday bias remains on the downside, as long as the 85.50 minor resistance line is not broken. On the downside, if the 81.60 low is broken it will continue the bearish sentiment and target the 81.50/80.70 major support lines.

Equity investors are looking at the long side of the market this morning as friendly talk out of Europe regarding the Irish debt crisis is renewing interest in risky assets.

The U.S. Dollar rose against the EUR USD and GBP USD as worries about Portugal’s ability to finance itself increased and demand dropped for risky assets and commodities. The shift in risk sentiment is expected to continue as long as issues about peripheral countries in Europe persist. Traders are not waiting for confirmation, but instead are reacting to the news as a precaution.