EUR/USD fell as low as 1.2588 a short while ago after taking out the barrier options at 1.2600 and the 50% retracement of the 1.1875/1.3335 rally at 1.2607. Traders eye additional stops at the 1.2580 level.
USD/JPY fell as low as 83.72 as the 84.00 level gave way. Japanese exporters have been very heavy sellers of dollars today after failing to hedge exposures at higher levels. The selling has reached near-panic proportions, traders say.
Very large bids at the 84.40 level were filled in earlier in the session; expect that area to provide resistance now on rebounds.
