EUR/USD closed below the 1.4300 level for the first time in months today as European banking jitters and rising US rates undermines the single currency. We fell during the afternoon, snapping the trend for session lows to be made on the London close followed by a recovery in the US afternoon. Talk of sovereign bids were heard this morning on weakness but not this afternoon as we fell as low as 1.4270. 1.4250 barriers are rumored.

Cable fell as low as 1.6032, its low for the trend. 1.6000 barriers are rumored. AUD fell to 88.06 amid rumors of 88.00 barriers. (Do I sense a pattern developing?)

USD/JPY got a big boost from the BOJ comments on major deflation challenges ahead in early 2010 and on the rise in US yields. Heavy offers at 91.00 were absorbed as USD/JPY rose as high at 91.24. 92.28 is the next topside target while trailing stops are eyed just below the 91.00 level now.