After days of selling in the JPY crosses, the markets are finally trying to stage a bounce. There is no fundamental shift at work, just the realization that markets rarely trade in a straight line for long. Having been badly burned early last week on buying into the short-lived reflation trade, dealers are quicker to book profits than they might otherwise be. EUR/JPY reached support at 117.75 before rebounding, a technical target for many. Any rebound is seen limited to the 120.00 area near-term.
USD/JPY has broken an hourly downtrend on its mot recent rebound, setting off some short-covering. Plenty of congestion around 90.00/90.30 should contain rebounds.
