USD/JPY has broken to the downside, cleanly breaking 88.90.
EUR/JPY is working lower as well, eyeing support at 115.85 next, followed by the 113.60 lows from October, the last time bank-stock woes dragged shares over a cliff.
EUR/USD is seeing some buying in the run up to the 16:00 fixing. With the market well-short EUR/USD, some modest short-covering has been seen on the inability to break through 1.3080 as the risk aversion trade played out this morning. Volatility has been high for months, so dealers are reluctant to let profitable trades get away from them, preferring to grab profits where they can. We trade now at 1.3166.
