EUR, JPY flows: USD lower after weak U Mich sentiment

A weak University of Michigan consumer confidence number has given the USD a renewed push lower, with European currencies initially the main beneficiaries. The softer equity market this afternoon suggests to us that the JPY ought to be benefiting from the USD decline, but there look to be some technical corrective pressures on JPY crosses into the end of the week. Even so, EUR/JPY looks to be closing in on the retracement target from the move down from the highs in the 1.7760-178 region, and we would look for the JPY to rally from there.