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EUR/JPY Takes Fresh Leg Lower

EUR/JPY is taking a fresh leg to the downside, hitting stops below the 106.65/70 level. We've dipped just below 106.50 thus far.

The cross is getting it from both ends. Traders report model-fund selling of EUR/USD while USD/JPY is seeing stop-loss sales on the break of 80.75.

Traders seem to be trying to draw out some BOJ action this evening by putting their feet to the fire via a stronger JPY..

Expect some semi-official buying (Kampo, Japanese institutional investors) interest toward 80.50/60 near-term.

EUR/JPY is a bit oversold on an intraday basis but still looks like a sales on rallies toward the 107.00 level with a stop above 107.15 resistance.