If USD/JPY and EUR/JPY are the risk barometer, than risk is coming off in droves. USD/JPY has fallen back to 89.62 and EUR/JPY has triggered stops below 133.35, suggesting the risk spigots are being turned off once again. Traders report a mix of stop-loss sell orders and bids clustered around the 89.50 level. This suggests if 89.50 is hit, there won’t be very much downside follow-through.
89.17, the low seen the other night amid the ZAR/JPY debacle, is next support for USD/JPY. Offers are seen toward 89.80/85 on rebounds