JPY came back under pressure in Asia and this left USD-JPY and the JPY crosses moderately higher compared with Wednesday’s N.Y. afternoon. Heavy fixing demand was noted via USD-JPY and the JPY crosses experienced good bargain hunting from speculative names. Liquidity was reportedly poor in some of the Asian session as players digested Wednesday’s sharp JPY gains in the face of rising risk aversion and heavy speculative unwinding of overstretched longs in the crosses. The floodgates opened in USD-JPY following a break of 93.50 and market positioning is still favorable for another challenge on lower levels. There was no talk of Kampo or other quasi-official interest overnight and rhetoric from the Japanese government was limited to a one-liner from government spokesman Kawamura, warning against excessive currency moves. There are bound to be rumors of BoJ checking today and a massive USD-JPY expiry at 93.20 for next Monday may help to calm price action. The JPY crosses remain a sell on strength after yesterday’s shake out and any recovery today may provide an opportunity for those that missed out on the downturn to lighten up positions.