FXstreet.com (Barcelona) - Asian markets are mixed on Wednesday on a cautious session, following a lackluster session in Wall Street. In FX markets, the Dollar has trimmed gains against Euro, Yen and Pound.

Tokyo Nikkei Index has declined 0.9%, while Hong Kong's Hang Seng Index Shed 0.7%, and South Korean Kospi Index rose 0.9%. Benchmark markets in China, Australia and Taiwan have posted moderate gains, while Indonesia, Thailand and Singapore markets fell.

Caution has dominated Wednesday's trade as markets have reached back to year highs, while global economy continued giving mixed signals about the strength of recovery, and investors, concerned about the possibility of overheated stock markets, have started to book profits.

Euro and Pound bounce up

EUR/USD suffered a bearish reversal on Tuesday at 1.5000 area, and after peaking at 1.5015, the pair dropped to 1.4805 low on U.S. session, to bounce up during Asian trade and reach levels right below 1.4900 at the moment of writing; 0.15% above the day opening price.

GBP/USD reversed on Tuesday from 1.6875 area, although the pair's pullback was held at 1.6755, to bounce up and appreciate during Asian session, reaching levels at 1.6835 at the moment of writing.

USD/JPY declined on Tuesday to re-test 88.70/75 support area, which proved strong enough, and the pair bounced up to 89.55 high, to ease during Asian session, reaching levels right above 89.00 at the moment of writing; about 0.1% below its day opening price action.