European Morning Wrap: Finally Some Profit-Taking on Short Yen Possies

Japan FinMin Aso: Will intervene in currency market when speculation drives excessive yen gains OR LOSSES Japan FinMin Aso: Wants to reach agreement with BOJ on inflation target before BOJ January 21-22 meeting Japan Economy Minister Amari: Will work more closely with BOJ to establish shared policy goals China central bank says current inflation situation relatively stable China central bank sees weakness, uncertainty in world economy ECB's Nowotny: Cautiously optimistic on finding way out of euro zone crisis in 2013 French Q3 GDP final reading +0.1% q/q, down from previous +0.2% French November consumer spending +0.2%, better than Reuter's median forecast of flat Goldman Sachs buying Japan's exporters on Abe policy bets - Bloomberg Here's what's behind the collapse of the Japanese yen - Business Insider Japan's call for weaker yen spurs talk of copycat moves - WSJ For along time this morning it looked like we were going nowhere.  Then all of a sudden a bout of EUR/JPY selling out of the Far East set things alight. EUR/JPY is down at 113.58 from early 114.45, having been as low as 113.30 at one stage.  The Aso comment re intervening in currency market when speculation drives excessive yen gains or losses will have helped fuel the yen buying. But when all is said and done, does anyone really expect the BOJ to come in buying yen anytime soon? The EUR/JPY selling took its' toll on EUR/USD which is down at 1.3170 from early 1.3240, having been as low as 1.3166.  The move accelerated when sell stops were tripped through 1.3200. USD/JPY down at 86.20 from early 86.45, having dipped fleetingly below 86.00.