USD/JPY, EUR/USD flows: Focus on the JPY

European trading has seen the focus remain on the JPY after Asia’s rally on repeated threats from Japanese officials over FX intervention.  Traders are watching whether a clean break is seen of 156.00 on USD/JPY, which could open up a test of 155.00 and 154.45 after Christmas.  The market is now waiting for the U.S. Q3 GDP data, where a reasonable breakdown is expected.  EUR/USD and other European majors are lagging the USD/JPY move, but still benefitting marginally.