EUR/JPY has slumped sharply as the Nikkei falls 6% and trades to session lows, fueling renewed risk aversion. The fall in the Nikkei comes after Bank of Japan’s announcement that rates will remain at 0.30%. EUR/JPY recovered from early Asian lows of 117.25 to highs of 118.52 this morning. However, it slumped back to 117.40 with risk for a move lower. Bids are reported at 117.20, 117.00 and 116.50. Offers remain at 118.80 and 119.00. Meanwhile, the dollar continues to hold most gains made yesterday, AUD/USD dropped to 0.6335 and bounced above 0.6400 but was unable to hold that level, easing back to 0.6363, EUR/USD saw lows of 1.2581 but buyers continue to emerge under 1.2600 with EUR-USD at 1.2630 ahead of the London open. NZD/USD bounced off 0.5250 and has steadied around 0.5300 much of the session. The risk aversion also saw USD/JPY fall to 92.88 lows before bouncing to 93.88, easing back to 93.10 in the afternoon.
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