In the US, amid overdone falls in the Yen cross, US traders put on the camouflage of risk-bidders, moving the rate away from a 4-day low just below 101-00, to now enter a new Asian session testing supply area around 101.50/55 vicinity, old support broken thru Europe, now acting as resistance.
No major data in Asia today, but overall risk sentiment has taken a turn for the worse, so investors will keep an eye on regional Asian bourses to gauge today's smart money strategies.
Should the risk-off theme continue, the Yen will be expected to strengthen vs other riskier asset classes including the Euro, with the possibility of a 101.00 retest not a distant prospect, which should hold in Asia. If the fall in risk accelerates and sees some stop losses sub-1.2920 in EUR/USD - yesterday's low - being tripped, watch for a squeeze in USD shorts across the board.
In turn, if markets are more benevolent to a risk-friendly environment, a break above 101.60/62 (200-DMA) should set the stage for stronger recovery aiming to regain 102.10, next resistance of note. Technically, the breach of Sept 19 descending trendline bodes well for bulls. It looks like on the early going, EUR/JPY is finding some minor bids.