The USD/JPY gained the most since 1974 on a global stock rally and speculation. The improvement in overall risk sentiment led investors to sell the low-yielding yen and buy higher-yielding assets. Carry trade unwinding that had been powerful lately came to a halt. The USD/JPY long-term trend is still down. There are resistance in the 99-area and support in the 96. Overall, the pair will likely continue to follow developments in the US stock market.

The Euro will look for a short-term corrective recovery as fear eases slightly, but rallies will tend to attract selling pressure relatively quickly given the underlying lack of confidence. The Euro rebounded back to above the 1.25 level in US trading as volatility levels remained high with a slight easing of fear curbing immediate dollar demand. Erratic trading persisted on Tuesday with the Euro gaining later support in Asia as stocks rallied from early lows with a move back to around 1.2570 while German consumer confidence.

The Pound also made an upward adjustment against the U.S. dollar yesterday. The currency couple made a peak at 1.6008 and closed at the same price. The current rise should also be seen as an upward corrective movement. The CCI indicator is now in final oversold area on the monthly time frame. During that phase however be careful if opening long positions. The nearest resistance is 1.6310, followed by 1.6405. CCI is in the direction to cross the 100 hour line on the daily chart, assuming potential upwards pressure.