JPY maintained an easier tone, although it was unable to challenge Monday's lows as the market consolidated ahead of a slew of earnings reports and today's Bernanke testimony. JPY edged higher in to the European open amid a reduction in speculative positioning, which enabled intra-day accounts to establish short positions. European indices only made very modest moves higher, while U.S. futures traded in negative territory. USD-JPY moved up to 94.25 from the 93.80 area and EUR-JPY traded back in to 134.00. There was some follow through interest in AUD-JPY on the back of EUR-JPY demand, with the former briefly trading in to 76.80 before moving back in to the 76.50 level. GBP-JPY was the exception; with a broadly softer GBP tone forcing a move back in to 154.40 from the 155.20 area. Flows were relatively light and range bound activity is likely ahead of the N.Y. open. Meanwhile, the Japanese election is gaining in significance, with the opposition expected to take power. Japan DPJ's Nakagawa said Japan's USD 1 tln forex reserves are too big and should be cut over time.