Forex: EUR/JPY consolidates below 112.00 ahead of BoJ (Córdoba) - After rallying toward an 18-month high of 112.47, the EUR/JPY lost momentum and trimmed part of its intraday gains as risk appetite deteriorated amid lack of progress in US fiscal cliff talks.

EUR/JPY retreated over 90 pips before finding support at the 111.55 area, although with the subsequent bounce capped by 111.90, the pair was confined to a slim range. At time of writing, the cross is quoting around 111.80, still up 0.4% on the day.

However, the yen remains under pressure ahead of the conclusion of the Bank of Japan policy meeting, as investors continue to expect the BoJ will increase its assets purchases, with EUR/JPY having climbed over 650 pips since Dec 10.