Forex: USD/JPY retreats from highs on headlines (Barcelona) - A wave of risk aversion is hitting financial markets right now after EU's Rehn speech, stating Spain is making progress and its measures and budget consolidation are enough, with no further steps needed at present. However, 2014 steps fall short from what's demanded.

The market may be disappointed by the implicit unlikely need of the OMT programme soon. Earlier, Reuters reported Israeli airstrikes on the Gaza Strip, killing the military commander of Hamas.

The USD/JPY retreated from its highs and fell to 80.16. As of writing, the pair tries to return to 80.30 zone. “We remain overall bullish and favour a sustained break above 80.66 to 81.78/87. This is the upside measured target from the wedge”, wrote analyst Karen Jones, pointing to a drop towards 78.39 if the pair breaks below 79.00.