EUR/JPY is taking a fresh leg to the downside, hitting stops below the 106.65/70 level. We’ve dipped just below 106.50 thus far.
The cross is getting it from both ends. Traders report model-fund selling of EUR/USD while USD/JPY is seeing stop-loss sales on the break of 80.75.
Traders seem to be trying to draw out some BOJ action this evening by putting their feet to the fire via a stronger JPY..
Expect some semi-official buying (Kampo, Japanese institutional investors) interest toward 80.50/60 near-term.
EUR/JPY is a bit oversold on an intraday basis but still looks like a sales on rallies toward the 107.00 level with a stop above 107.15 resistance.
