15:01 (GMT) 18 Jul - EUR/USD and USD/JPY, intraday, appear to be in their own, exclusive worlds. EUR/USD has gone from advancing with the support of macro and supranational buying to tumbling in reaction to offers led by Asian names. Equities softened earlier and along with an "offhand" and rational statement from Germany's Chancellor Merkel about the unknowns ahead for the eurozone EUR/USD fell easily through the 1.2200 level. Selling dried up and equities ticked up, which had the usual impact and EUR/USD reclaimed lost ground and sits in the mid-1.2200 area.
While EUR/USD has been moving back and forth in its recent range, USD/JPY has been quietly and consistently sliding, breaching 79.00 and on the way to challenge semi-official and importer bids that start in earnest around 78.70. Today's end of day activity has EUR/USD creeping higher in sympathy with equities more than being driven higher by buyers. For USD/JPY, traders are in need of a wake-up call! M.B.