The EUR/JPY sunk to the base of the Ichimoku cloud at 158.15 yesterday when the EUR was getting sold post the change in the G7 communique and Asian equities were getting hammered. The pullback in the cross has been fairly dramatic and validates the bottom of the cloud as key support.
The EUR/JPY moved back above the top of the cloud at 159.25, the 100-day MA at 159.40 and the tenkan line at 159.95. The next level of resistance is found at the 200-day MA at 160.90. The parameters of the cloud descend to 158.00/158.90 and should be viewed as key support levels.
The performance of Asian equities today should have an influence on EUR/JPY sentiment and a bounce back should underpin the EUR/JPY for more gains. The EUR/JPY trades 159.98/160.03.

USD/JPY saw quite a bit of action yesterday in Asia and into the overnight session. From a low of 100.03 in London, the pair traded up to as high as 102.05 as USD shorts were forced to cover and on the back of strong JPY cross demand. Early trading in Asia has also seen some action with USD/JPY trading up through the overnight and tripping stops up to a high of 102.15. US names were good buyers on the way and other US names were reported to have been good sellers up top, taking USD/JPY back down to as low as the 101.60 level. The pair currently trades 101.80/85, showing some bounce with Japanese names reported to be back on the bid. Importers and investors who missed out the move down to yesterday”s lows look to be back in on the bid to again take advantage of dips. Support of sorts looks to be building in the 101.50-60 area with bidding interest especially strong from 101.00 and trailing lower. The market is thin ahead of the G7 and the weekend and further dips down cannot be ruled out. That said, the bias looks to be to the upside again, albeit gingerly, and another test of the 102-handle is seen likely by many. Offers are likely to be stiff towards the early highs and especially so ahead of presumed option barriers at 103.00

According to the latest comments from the German deputy FinMin, Mirow, the German FX position on intervention is identical to that of Trichet and Juncker. Germany will also be looking for a “strong” message from the G7 on recent market turmoil. The latest rhetoric adds little colour to the picture with EUR/USD still trading in the low 1.57″s - having bounced after quality Swiss buying into the 1.5675 lows.

with 100 pips lost

our long was under pressure in early asian session, but it was rebound from N.Y. daily low, we expect to retest 204.5 in the first half of japanese session

at 203.80

after bad weekly jobless claims at 407K we have closed our position at 102.64

buy at 102.24, target - 103.6, stop 101.74

USD/JPY looks to be consolidating recent gains to the 102-handle. It traded up to as high as 102.84 overnight but has since come off on bearish economic talk from FOMC Chairman Bernanke who posited the possibility of a short-lived recession and as stocks turned down and the VIX up a bit following the plunge Tuesday. The DJIA closed out the day down 48.53 points at 12,605.83. With Wall Street down a bit, expectations are for consolidation on the TSE as well, perhaps even some modest losses after the massive rally seen yesterday as some profits are booked. Whatever the case, the stock market looks to be the center of attention today with little in the way of major economic data here or abroad till tomorrow, when the US releases its latest jobs report, something which could set the tone for USD well into April. Investor sentiment does remain upbeat however and JPY pairs will likely see demand on meaningful dips. In the case of USD/JPY, this means moves down below 102.00 towards the 101.50 low seen in Asia yesterday. Importers, investors and those still looking to cover stale shorts look to remain in wait there. Offering interest ahead of 103.00 will likely hold today though sizeable stops remain above. Initial support is seen around 102.00, 101.96 the low in New York. London saw a low of 101.72. USD/JPY currently trades 102.27/30.

USD/JPY is going nowhere fast. The Tankan report, although slightly more weak than generally expected, produced no major fireworks. USD/JPY traded up to the 99.95 area but has since eased back to the 99.77/80 seen currently. Offering interest remains up to 100.00, trailing up to 100.20, the spike high in Tokyo yesterday. Stops are eyed above this level and 100.40, the spike high in London on Friday. It is a new month, quarter and Japanese fiscal year, and dealers seem to be taking it easy, not rushing into positions ahead of the all-important US nonfarm payrolls data this Friday which will likely set the tone for USD going forward. Although some players are talking of another test towards 95 in USD/JPY, along with a possible EUR/USD break above 1.60 on a weak US jobs report, the former may be difficult with Japanese importers and investors, retail and institutional, expected to be solid buyers on dips. This was the case yesterday on moves down in USD/JPY and the JPY crosses, and perhaps increasingly so going forward. The USD/JPY upside could be limited however with USD weak across the board. This is only one possible scenario however