The USD and JPY both weakened as the market took advantage of thin trading conditions due to the absence of Tokyo, and squeezed shorts in JPY crosses, targeting stops. Momentum for the squeeze had already begun during the NY session from the strong rebound in the EUR-USD. EUR-USD, opened at 1.3130 in Asia and extended gains to highs of 1.3197. USD-JPY, which was trading around 96.40 in late NY, rallied to highs of 97.05 on the cross-related buying. EUR-JPY, which opened around 126.75, rallied to highs of 127.95 and is well up from lows of 124.38 on Tuesday. There was no fresh news and on balance, news for currencies such as EUR remained negative while falling oil and gold prices which fell during Asian trading, typically are negative for AUD and CAD, yet both currencies gained on the session. To some degree, the improved U.S. confidence data Tuesday was a positive, but traders felt this was offset by ongoing swine flu concerns. Asian stock markets were mostly higher on the day. U.S. Treasury yields, after strong gains on Tuesday, were little changed in Asia due to Tokyo’s absence.