Forex Market Update: Japanese Yen Crosses Bounce Back, Led by EUR/JPY Bids

[B]A surge in EUR/JPY is behind gains in both USD/JPY and EUR/USD[/B] in afternoon trading in Tokyo. A number of factors helped the rally including an extension of the rally in the Nikkei after the midday lunch break with the index up 0.74%. Rumors of Asian central bank bids on EUR/JPY also aided the cross and talk that fresh topside stops had emerged above 133.80 and 134.00 following the sharp sell-off this morning that squeezed out margin account holders. A high of 134.19 has been traded so far, with offers tipped at 134.20 and 134.50. USD/JPY rallied to high of 96.71 on the EUR/JPY gains with EUR/USD rising to 1.3880.