EUR/USD has broken through 1.3710, setting the stage for a further recovery toward 1.3840 while USD/JPY has has hit stops below 92.80, opening the way for a dip to 92.40 support as we write. Further support is eyed toward 92.00 where Japanese bids are rumored.
Dealers noted buying by Japanese exporters overnight, and unusual situation as they are natural sellers of dollars. Some suggest sales volume is way down so the exporters are over-hedged while others suggest the manufacturers may have panicked and sold too many dollars when 90.00 gave way during the thin markets of December.
