EUR/JPY trades at session highs, right near 134.00 as USD/JPY finds support just ahead of 100.00. Keep an eye on the 50% retracement of the 137.46/130.95 decline which comes in at 134.20.
JPY remains weak as the Japanese economy looks more and more like the hardest hit economy in the world by the present downturn. A fresh stimulus package is in the works and quantitative ease is being ramped up again, helping undermine the JPY. This is quite welcome to the Japanese authorities.
Stocks and oil have recoupe dmuch of their morning losses, supportive factors for EUR/JPY as traditional risk measures are coming back into line this afternoon.
