Last nights surprise (on the back of real money flows) USD/JPY rally to 77.58 has just about been completely unwound. The move higher was just another one-day wonder with the return of Japanese players today after yesterdays holiday happy to sell once more. This mornings move has pushed EUR/JPY through 103.00 to a low so far of 102.92. Despite the shocking Japanese fundamentals it appears that risk aversion wins the day.