Session Recap: Yen buying gains traction; Euro consolidates losses

Investors in Asia are getting comfortable buying the Yen, it seems, as the currency ends yet another session as the to performer, this time on supporting Tokyo headlines, in which rumour has it that the favourite candidate to replace ongoing BoJ governor Shirakawa is Toshihiro Muto, who is seen as less dovish than the other front runner, Mr. Kazumasa Iwata.

Meanwhile, the New Zealand Dollar continues to make merits to be known as the 'darling' of the FX market, replacing the Aussie in that position. Talking about the Aussie, the currency is consolidating gains above 1.0360, signs that the downtrend structure has been severely damaged. The Euro and Pound, main losers on Thursday, may be classified as neutral, having consolidated recent losses.

Main headlines in Asia (in chronological order)

- USD/JPY ends at 3-day low; evidence of top below 92.00

- Wall Street closes mixed pressured by European data

- New Zealand sales up 2.1% vs 1.1% estimates; NZD/USD reaches new 1.5 year high

- NZD/USD is on fire! break of 0.85 allows 0.8560/70

- Negotiations to pick next BoJ chief soon underway

- AUD/NZD to as low as 1.15 - TDS

- USD/JPY retesting 92.70 lows on Amari headlines

- Japan's Muto leading candidate to take BoJ post, Reuters say

- EUR/JPY downside incomplete; room for 123.35/50 and even lower - FXA

- Japanese December revised Industrial Output is at +2.4% vs. +2.5% for the preliminary reading

- The BOJ has released its monthly report, has revised up its economic assessment

- Kiwi strength to stay – ANZ

- RBA’s Kent: Comments on China and mining