The JPY weakening trend continued in Asian trading with USD-JPY rising above 97.00 following the release of Japanese trade data which showed a record drop in exports of 45.7% year-on-year. Option-related stops were triggered in the move up which tested highs of 97.33. AUD, NZD, GBP and EUR all consolidated gains that were made in late NY, in response to the strong close of the U.S. stock market. EUR-USD consolidated between 1.2837-77 much of the morning but then dropped back toward 1.2800 mid-session with euro zone economic concerns and Eastern European woes still lingering. EUR-JPY attempted and failed to take out option-related stops above 125.00 but found solid support on dips under 124.00. Asian stock markets were mixed with the Nikkei rising as exporters rallied on the weak JPY but but stocks in China and Australia were weaker. Oil prices held above $40 early in the session until the Japanese data showed a drop in Japan's oil imports for the third month in a row, which sent oil back under $40. Comex Mar gold contracts fell $5.90, with gold extending losses after the failure to hold above $1,000. Further signs of regional economic weakness emerged with HK Q4 GDP dropping -2.0% for the quarter.
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