FX market focus remains on the JPY crosses
There were plenty of reports in the chatroom on Monday morning of large stop-loss orders on the down-side in the JPY crosses and it looks like the first part of this week has been spent trying to trigger these orders. GBP/JPY and CAD/JPY look to have been two of the bigger movers. Whilst there is certainly a hint of risk-aversion in the air, this looks like a typical squeeze of longer-term positions and their trailing stops.
EUR/JPY has broken below important support levels at 135.50 and USD/JPY is still being stalled by Fibo support at 106.80. If these levels continue to hold, then the downside pressure on EUR/USD should increase significantly.