The Chinese news that they will maintain an easy monetary policy helped pump life into the reflation trade overnight and the sub-600K jobless claims data (and drop in continuing claims) is helping strengthen the trade further.
The dollar is a less-direct participant today as position adjustment outweighs robotic adherence to correlations at the moment.
EUR/JPY is responding positively, however, climbing to the 134.20 level.
USD/JPY has been supported by higher US yields all week and is challenging the 95.50 area where a barrier was rumored earlier in the day. Exporter offers are rumored in addition to the options-related interest.
