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Forex pairs in this Article » EUR/USD, USD/JPY (Bali) - The Japanese Yen weakened in Asia, while on the flip side, the Australian Dollar was the most benefited.

USD/JPY saw an early run to stop below 102.00, reaching a new 2014 low of 101.77 before importers, Japanese banks and leveraged accounts became active buyers on the dip, lifting the rate back up towards 102.50, where the recovery was temporarily halted. A rebound off critical support in the Nikkei 225 circa 14,900 helped Yen crosses.

AUD/USD had some early attempts to the downside but lack of follow through in emerging markets selling coupled with oversold conditions after the strong hammering of the last few days, allowed buyers to successfully break above 0.8725 resistance, tripping stops in the process, before stabilizing in a consolidation box.

In the fundamental front, an overblown article by Forbes on PBoC ordering banks to halt transfers was ignored by the market. Also, fears of contagion effects on a possible Chinese WMP default eased after it was learned that ICBC, who marketed the product, would be partially participating on a bail out. In Japan, the trade balance deficit kept worsening, while the BoJ minutes didn't bring any major surprise as widely expected.

Main headlines in Asia

Specs and leverage accounts add USD long exposure - TDS

USD/JPY selling-off, stops sub 102.00 tripped

USD/JPY early fall attributed to Mrs. Watanabe's stop-losses

Hedge funds pessimism over EMs mounts - FT

First Chinese WMP default in focus

PBoC transfer suspensions only for small accounts

BoJ minutes: Positive econ cycle to be undisturbed by sales tax hike

Japan's trade balance worsens in Dec 2013

Very large funds or banks busy selling EMs? - Societe Generale
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