Yen gains, euro close to 9-year low

USD/JPY and some JPY crosses continued lower in Asia with risk-off sentiment pervasive and offshore yields off large. Reflecting this sentiment and following plunges on Wall Street and on European bourses, the Nikkei plunged. This helped USD/JPY fall from a retracement high of 119.79 in New York and 119.64 early in Asia to 119.15 before steadying. Heaviness is seen from 119.50 with the Ichimoku tenkan line. EUR/JPY moved towards the base of its Ichi cloud at 141.63, off from a retracement high of 142.96 and 142.71 early to 142.28.

EUR/USD opened in Asia at 1.1932 after recovering from 1.1887 overnight as long-dated Treasury yields fell sharply and as USD/JPY led USD broadly lower. Dipping a bit to 1.1927 early, it grinded higher still to 1.1955 with the pop in AUD/USD keeping USD on the defensive. Sentiment remains decidedly bearish however with uncertainties surrounding the Greek election on January 25 and ECB policy on January 22 definite weights. Resistance is eyed from 1.1975-80 with more sellers eyed ahead of former support at 1.2000-05. A break above 1.2010 could alter current scenarios however.

GBP/USD traded modestly higher in Asia from 1.5247 to 1.5274 alongside EUR/USD with shorts continuing to cover. EUR/GBP treaded water between 0.7820-28.

USD/CHF traded heavy, off modestly from 1.0073 to 1.0050 in line with a broadly soggy USD. EUR/CHF did absolutely nothing, holding at 1.2014-19.

AUD/USD opened in Asia at 0.8084 and rallied from 0.8081 to 0.8152 in an apparent short-squeeze, making more tracks away from the 0.8036 Asia afternoon low yesterday. Good trade data and reports of Chinese spending to boost growth helped. Some stops were tripped on the move above 0.8130. Offers above 0.8150 helped cap it despite talk of more stops above 0.8160. AUD/USD has since eased back with bear sentiment hard to shake for long.

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