Any jitters that higher US rates would lead to a return to economic malaise seem to have been long forgotten late in the US morning. Outflows from Japan have been huge in recent sessions as domestic investors look for greener pastures for their cash. Emerging markets have taken a larger than normal percentage but developed markets are seeing their share as well.
USD/JPY tested its 200-day moving average earlier in the session and EUR/JPY is testing session hihjs and the highes levels seen since the beginning of April at 135.12. The cross overcame important resistance at 134.80 earlier in the day and dealers will look for a close above that level as a bullish sign for a return to he 137.00 level in the days ahead.
