This pair simply does not move quickly, or at least hasn’t done so in Asia for quite some time, so to see a 40 pip drop in less than an hour is an unusual occurence. As I said yesterday, there’s a growing feeling in the interbank market that another test of 80.00 may soon be underway despite the buying from Kampo and China. There were even official reports yesterday out of China that they need to decrease their USD reserves and increase their JPY reserves so unless they are protecting an option structure, there seems little reason to be buying.