EUR/JPY is on the recovery trail as sizable buyer of USD/JPY has made his presence known. Also helping is a rebound in US equity prices from a test of support in the 875/880 area in futures this morning and a bounce from the 200-day average in the cash market at 886.6.
If oil starts to take back bigger chunks of its losses a nasty EUR/JPY squeeze could lay ahead. 133.45/50 is crucial resistance on rebounds, the area where the broken trendline from overnight overhangs the market this afternoon.
EURUSD has already retraced better than 61.8% of its overnight losses, now at 1.3955 .
