A swift 100-point drop in USD/JPY overnight as news of BoE emergency lending hit the screens. GBP/JPY tumbled from 234.80 highs to 231.10 with stops tripped all the way from 234.00 through 232.00.
The cross eventually based and a short squeeze through late Asia provided Europe with better selling levels. This move for the cross was mirrored by the spot market with USD/JPY peaking at 115.50 and basing at 114.50.
Japanese investment accounts have again been busy on the buy side and were reportedly picking up good amounts of Dollars from 114.55-60. The Dollar has climbed back above 115.00 and is again looking to test the resolve of option related offers, which are reportedly mixed in with exporter and Asian speculative sellers.
A small knock back from 115.39 has been seen as London players get their chance to react to the Northern Rock news. The Market is looking like 114.50 to 115.50 with the 115.00 level likely to attract and pivot price ahead of the North American session.
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