Having found buyers at 100.50 this morning, USD/JPY ha been slowly recovering all afternoon and squeezed out a few intraday shorts above the 101.00 level.The buck has recovered all the losses since since it was smashed by a US investment bank not long after the US open.
EUR/JPY is creeping higher as well, supported by the a recovery in US equities. Shares are down about 1.3 %, well above earlier lows seen not long after the opening in New York.
With the dollar bid across the board, we continue to favor USD/JPY over EUR/JPY in the near-term. EUR/JPY punched through the 200.day average earlier in the session only to fall 300 pips.