Currency markets suddenly sparked into life late in Asia trading. After several days where the US Dollar was stuck in narrow ranges against the Japanese Yen, Euro, Swiss Franc and British Pound. As is so often the case, when the financial markets are transfixed into inactivity, in narrow ranges, it is something very minor that will trigger the stops. So it was in late Asia trading and the Japanese Yen. The release of some secondry domestic economic data started a flurry of activity which saw the Japanese Yen start to rally, set off stops and so set a scramble to cover long dollar positions. The Japanese economic statistics were:
Japan Domestic CGPI for January out at 0.2% vs. 0.1% expected - and 2.7% year-on-year vs. 2.6% expected

Japan Export Price Index fell -2.1% in January from the previous month, but was up 5.3% year-on-year
Japan Import Price Index fell -1.0% in January from the previous month , but was up 23.0% year-on-year

Japan Overall Household Spending fell -0.7% in December vs. +1.0% expected
Japan Machine Orders for December out at 6.8% vs. 1.5% expected

Forex traders pushed the Japanese Yen through the support at 118.20 to end the day at around the 117.75 level. Minor support sits at 117.50 with slightly more at 117.10.

The US dollar remained fixed and firm against the European currencies, Euro, Swiss Franc and British Pound. We are likely to see a quiet morning in the fx markets, until the relaese of the US trade data at 13.30 GMT. The consensus is for a deficit of 64 billion US Dollars.