The Japanese yen recovered further overnight on risk aversion as global equities were pressured by the selloff in China and Greece. DJIA dived to as low as 17629.57 before paring much loss to close at 17801.20, down -51.28 pts or -0.29%. Asian equities follow with Nikkei down over -280 pts at the time of writing. Yesterday's the Greek ASE index plunged -13%, the biggest fall since 1987 over political turmoil. Greece announce to bring forward the next presidential vote to this month just after Eurozone ministers approved the request for two month extension of tis bailout program. The presidential vote will be held on December 17 and Prime Minister Antonis Samaras said the "clouds" will be gone after the vote and Greece would be ready to "officially enter the post bailout era" after that.
Technically, major yen crosses should have topped in near term. 119.26 support in USD/JPY, 147.02 support in EUR/JPY and 187.29 support in GBP/JPY were taken out. It should also be noted that bearish divergence conditions are seen in 4 hours charts in these three crosses. We'd likely see some more pull back in these yen crosses ahead. Also, this view is support by the fall in US treasury yields. The 30 year yield dropped through 2.886 support yesterday, which extended recent down trend and could give USD/JPY some pressure.
On the data front, Japan domestic CGPI rose 2.7% yoy in November, BSI large manufacturing index dropped to 8.1 in Q4. Australia Westpac consumer sentiment dropped sharply by -5.7% mom in December, home loans rose 0.3% mom in October. From China, CPI slowed further to 1.4% yoy in November while PPI also dropped to -2.7% yoy. Looking ahead, Japan consumer confidence, UK trade balance will be the main focus today.