The breath-taking rally in EUR/JPY has finally paused for breath and prices are receding in both legs of the cross. Prices briefly pierced 108.00 (triggering a barrier) before selling from Japanese exporters (who have to be tickled pink to sell at 108!) were able to cap the market. EUR/USD has pulled back below 1.4400 but remains better bid than most would expect given the Wall Street rally. Look for bank analysts to pin that fact on fears over greater US government borrowing, but that’s over-thinking it, in my opinion. More a cross move and a squeeze of positions taken overnight on renewed optimism which proved ill-timed.